Global S&T Development Trend Analysis Platform of Resources and Environment
11 million households to make savings as government extends cap on energy bills | |
admin | |
2020-10-20 | |
发布年 | 2020 |
语种 | 英语 |
国家 | 英国 |
领域 | 气候变化 ; 资源环境 |
正文(英文) |
Press release
11 million households to make savings as government extends cap on energy billsAround 11 million households across the UK will be protected from being overcharged on their energy bills thanks to an extension to the government’s Energy Price Cap until the end of next year. ![]() *Energy Price Cap extended until end of 2021, protecting around 11 million UK households from being overcharged *households on standard variable and default energy tariffs will continue to save between £75 and £100 a year on dual fuel bills *2.8 million electricity and 2.1 million gas customers switched supplier in the first six months of 2020 The Energy Price Cap shields those least likely to shop around for the best deals – including the elderly and most vulnerable – from being charged excessive prices. Since its introduction in January 2019, the cap has saved customers around £1 billion a year, equivalent to around £75-100 a year for typical households on default energy tariffs. An additional 4 million households with prepayment meters on default tariffs will also come under the protection of the cap from January. Business and Energy Secretary Alok Sharma said:
In addition to the price cap, millions of customers have been able to benefit from lower bills as the numbers of those switching to cheaper tariffs has increased and the rollout of smart meters has progressed in recent years. A total of 2.8 million electricity and 2.1 million gas customers switched supplier in the first 6 months of 2020, building on record numbers of households switching to cheaper tariffs in 2019, the first full year of the Energy Price Cap. However, more than half of customers are still on standard variable or default tariffs, where, in the absence of the cap, they would likely still be paying excessive charges for energy use. In August, the independent energy regulator, Ofgem, recommended an extension to the cap following a review into the market. Today’s announcement follows that recommendation. The Energy Price Cap extension is the latest government measure to help vulnerable customers with their energy bills and follows particular support during the coronavirus pandemic. Energy suppliers have given prepayment and pay-as-you-go customers support when they faced financial distress. Those with prepayment meters have also benefited from a price cap that is in place until the end of the year. Today’s announcement means a further 4 million households with prepayment meters on default tariffs will continue to be protected from excessive prices by the wider Energy Price Cap once the Competition and Market Authority’s Prepayment Meter Cap expires at the end of 2020. Jonathan Brearley, Chief Executive of Ofgem, said:
Notes to editors*Research by the Competition and Markets Authority showed that consumers on default tariffs had been overpaying the ‘Big Six’ energy companies some £1.4 billion a year before the introduction of the Energy Price Cap. *The Energy Price Cap, continuing through 2021, is set by energy watchdog Ofgem, which reviews it every 6 months to reflect changes in the cost of supplying energy. This ensures those who do not shop around, often elderly and low-income households, are protected from paying over the odds. *In August, Ofgem announced the price cap level for October 2020 to March 2021 would be £1,042 for typical users paying by direct debit.
Published 20 October 2020
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URL | 查看原文 |
来源平台 | Department for Business, Energy & Industrial Strategy |
文献类型 | 新闻 |
条目标识符 | http://119.78.100.173/C666/handle/2XK7JSWQ/299531 |
专题 | 气候变化 资源环境科学 |
推荐引用方式 GB/T 7714 | admin. 11 million households to make savings as government extends cap on energy bills. 2020. |
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