West Dorset MP Chris Loder has welcomed the Government’s launch of the Energy Price Guarantee which is estimated to save a typical household around £1000 a year on their energy bills.
The Energy Price guarantee, launched by the new Secretary of State for Business, Energy and Industrial Strategy (BEIS), Jacob Rees-Mogg, will place a cap on typical household energy Bills of £2500 after the Energy Regulator OFGEM announced it would raise this amount to over £3500.
Mr Loder said: “this scheme provides much welcome security for households. Whilst costs inevitably rise, this new cap will give peace of mind for struggling households who were fearful of exponential rises in their energy bill and will make things far easier for families to plan out their financial future.”
The Government’s scheme is accompanied by an additional cap on wholesale costs of energy, meaning businesses, charities, schools and other premises that would not qualify for the domestic scheme will be able to benefit from the equivalent level of Government support.
A 6 month freeze on wholesale energy costs from 1st October 2022 to 31st March 2023 will also provide a welcome relief for establishments which could see their final monthly costs fall by as much as 40% because of this scheme.
Mr Loder continued: “There will be many businesses who have approached me with concerns about support available outside the domestic market who will be relieved by this news. This will enable them to plan ahead with greater certainty as we approach the winter months. I am pleased the Government is listening to the concerns I and my colleagues have been raising about energy costs.”
