This is how Leeds households will get £200 off their energy bills after Rishi Sunak announcement
and live on Freeview channel 276
The regulator increased energy price cap to a record £1,971 for a typical household as gas prices soared to unprecedented highs.
For customers with prepayment meters the price cap will go up by £708 to £2,017, the regulator added.
Advertisement
Hide AdAdvertisement
Hide AdThe decision is likely to impact 22 million households across Great Britain, and applies to those who are on their energy supplier’s default tariff.
How have the Government responded?
Shortly after the announcement, Chancellor Rishi Sunak promised to “take the sting out” of the price rises.
He promised that all 28 households in Britain would get a £200 up-front rebate on their energy bills from October.
The Government will provide the cash for this, but it wants the money back so will hike bills by £40 per year over the next five years from 2023 to recoup its cash.
Advertisement
Hide AdAdvertisement
Hide AdIf all goes to plan, wholesale energy prices will drop so households can pay back what they owe, without a major rise in bills.
Some energy company insiders worry that while good in principle, the policy is too reliant on falls in global gas prices.
But experts are not sure this will happen, at least not soon, Goldman Sachs has already warned that prices in the gas market are likely to remain at twice their usual levels until 2025.
Mr Sunak also promised a £150 council tax rebate for homes in bands A to D, something he said would cover around 80% of homes in England.
Advertisement
Hide AdAdvertisement
Hide AdHe also promised £144 million to councils to support vulnerable people.
“The price cap has meant that the impact of soaring gas prices has so far fallen predominantly on energy companies,” the Chancellor told MPs on Thursday.
“So much so that some suppliers who couldn’t afford to meet those extra costs have gone out of business as a result.
“It is not sustainable to keep holding the price of energy artificially low.
Advertisement
Hide AdAdvertisement
Hide Ad“For me to stand here and pretend we don’t have to adjust to paying higher prices would be wrong and dishonest.
“But what we can do is take the sting out of a significant price shock for millions of families by making sure that the increase in prices is smaller initially and spread over a longer period.”
Ofgem chief executive Jonathan Brearley said: “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.
“The energy market has faced a huge challenge due to the unprecedented increase in global gas prices – a once in a 30-year event – and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas.”
Advertisement
Hide AdAdvertisement
Hide AdThe price cap increase includes a £68 charge per household to cover the costs of protecting millions of customers whose energy suppliers collapsed in recent months.
Where to get extra support:
Those worried about the impact of these changes can contact Burmantofts-based Money Buddies free of charge.
Citizens Advice Leeds (CAL) and Chapeltown Citizens Advice also provides free, independent and confidential advice about concerns such as benefits, debt, employment and housing.
StepChange is a national charity that can offer free and independent debt advice and solutions, both online and over the phone.
Advertisement
Hide AdAdvertisement
Hide AdYorkshire Water said it is currently currently supporting a record number of customers with its financial help schemes.
Yorkshire Water has four main schemes:
WaterSupport, which helps customers on lower incomes, with income-based benefits, pay water charges.
Community Trust, an independent charity at Yorkshire Water supporting customers who have arrears.
WaterSure, which can help low-income households where there are larger families, or customers who need to use additional water for a medical condition.
Advertisement
Hide AdAdvertisement
Hide AdResolve, which helps those who are struggling with debt to catch up on previous bills.
Support the YEP and become a subscriber today. Enjoy unlimited access to local news and the latest on Leeds United. With a digital subscription, you see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Click here to subscribe.