UK energy prices to fall from July 2023

Following concerns over the effect of a proposed 80 per cent increase in energy prices energy price rises, then Prime Minister Liz Truss announced that the Energy Price Guarantee (EPG) would be introduced from October 1, 2022 and last two years.

The EPG was to reduce the extent of price increases for domestic customers. Under the scheme, the Government sets maximum prices for gas and electricity and compensates energy suppliers for providing these at below cost prices, a research briefing issued by the UK House of Commons Library said.

Maximum energy prices for customers on standard variable tariffs are set by the lower of the EPG or the energy price cap. The EPG was lower during the period October 2022 to June 2023. The price cap for July to October 2023 will be lower than the EPG, so prices will fall to the cap level during this period, Paul Bolton said in his research briefing.

ALCHEMPro News Desk (RKS)