Energy Bills and the Price Cap news in 2022
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- December 2022
UK government confirms voucher delivery for £600 Northern Ireland energy bill support
The UK government has confirmed that around 500,000 Northern Ireland households without direct debits will receive £600 energy bill support as vouchers issued from mid-January 2023.
Default tariff (price cap) factsheet withdrawn
The government withdrew its Energy Security Bill factsheet on the default tariff price cap on 29 December 2022, after removing the Energy Price Cap measure from the Bill.
Bulb sale process concluded
The sale of Bulb Energy concluded on 20 December 2022 after a 10-month process, with its 1.5 million customers transferred to HiveCo, owned by the Octopus Energy Group.
Joint letter sent to energy firms over prepayment voucher access
Five consumer and energy organisations have written to energy suppliers calling for immediate action after a third of Energy Bill Support Scheme vouchers sent to traditional prepayment customers went unredeemed.
Which? responds to unredeemed Energy Bill Support Scheme vouchers
Which? says a third of Energy Bill Support Scheme vouchers sent to traditional prepayment customers have not been redeemed, and has joined other bodies in writing to energy firms.
Government confirms £600 single payment for Northern Ireland households and £200 Alternative Fuel Payment for Great Britain
The government has confirmed a single £600 payment for all Northern Ireland households and a £200 Alternative Fuel Payment for Great Britain homes using fuels such as heating oil, with payments starting in January 2023.
Christmas prepayment compulsion ban period begins
Electricity and gas suppliers in Northern Ireland have begun a Christmas period during which they will not compel customers in debt onto a prepayment meter unless the customer asks for it.
MPs debate prepayment meter self-disconnection and call for a ban
MPs debated self-disconnection of prepayment meters in the Commons on 15 December 2022 and agreed a motion urging the Government to outlaw the practice and halt forced switches.
Energy UK publishes briefing on supplier support for customers as bills rise
Energy UK has published a briefing setting out the support energy suppliers give customers, including around £54 million of discretionary help on top of more than £1 billion in mandatory schemes each year.
Investigation reveals almost 500,000 court warrants for forced PPM installations since end of lockdown
An investigation for the i paper found energy firms secured almost 500,000 court warrants to install prepayment meters in the homes of customers in debt since the end of lockdown.
BEIS minister confirms £200 Domestic Alternative Fuel Payment timing
A BEIS minister has told MPs the £200 Domestic Alternative Fuel Payment will be paid in the New Year, with most households receiving it through their electricity bills.
Charities and consumer groups write joint letter to energy firms on prepayment customer access to support
Five consumer and anti-poverty organisations wrote jointly to energy suppliers in December 2022 demanding immediate action so traditional prepayment meter customers could access government bill support.
Charter debt repayment reduction takes effect for prepayment customers
Electricity and gas suppliers in Northern Ireland have cut the maximum debt repayment deduction for prepayment customers from 40 per cent to 20 per cent, under a voluntary charter running to 31 March 2023.
Directions No. 1 issued for Northern Ireland energy suppliers
The Secretary of State for Energy Security and Net Zero issued Directions No. 1 under the Energy Prices Act 2022, requiring Northern Ireland domestic suppliers to seek agreement before changing tariffs on any day other than the first of a quarter.
Octopus Energy takes on 1.5 million customers from Bulb
Octopus Energy took on an additional 1.5 million customers from Bulb in December 2022, a transfer that reshaped the supplier market and lifted its customer base.
OVO announces £50m Customer Support Package
OVO has announced a £50m Customer Support Package for winter 2022, including payment holidays on prepayment debt, a 200% rise in emergency top-up credit and a partnership with the Trussell Trust.
OVO Energy introduces temporary ban on forced prepayment meter installations over Christmas
OVO Energy has paused forced prepayment meter installations over Christmas and suspended debt recovery until at least March 2023, but says forced installations will resume in the new year.
OVO Energy suspends debt recovery until at least March 2023
OVO Energy has suspended debt recovery until at least March 2023, so prepayment top-ups pay only for usage and standing charges rather than existing arrears.
Research reveals PPM customers living in cold damp homes and self-disconnecting
Research for the Warm This Winter campaign finds 64% of prepayment meter customers are vulnerable, 13% have self-disconnected and 31% live in cold damp homes.
- November 2022
Rates for January to March 2023 added
The government added Energy Price Guarantee regional unit rates for January to March 2023 to its published tables, setting the maximum amounts suppliers could charge under the scheme.
Ofgem publishes Default Tariff Cap level for 1 January 2023 to 31 March 2023
Ofgem has published the Default Tariff Cap level for 1 January to 31 March 2023, raising the dual fuel direct debit cap by 21 per cent to £4,279.
Pre-payment Meters (Self-disconnection) Bill receives First Reading
Anne McLaughlin's Ten Minute Rule Bill on prepayment meter self-disconnection received its First Reading on 19 October 2022, seeking a grace period before disconnection and debt management support.
Energy price guarantee to rise to £3,000 in spring and be extended 12 months
The Energy Price Guarantee will rise to £3,000 in the spring and be extended for another 12 months, a change the CIPHE says leaves domestic consumers facing a 164% rise in two years.
Which? responds to low redemption of Energy Bill Support Scheme vouchers among prepayment customers
Which? has called on energy firms and the government to work with top-up outlets to find out why a third of traditional prepayment customers have not redeemed Energy Bill Support Scheme vouchers.
Chancellor confirmed EPG support until end of March 2024
Ofgem has set the energy price cap for April to June 2023 at £3,280, below the £3,000 Energy Price Guarantee level confirmed by the Chancellor on 17 November 2022 and running to March 2024.
EPG NI scheme confirmed already in force
Lord Callanan told the Lords Grand Committee on 16 November 2022 that the energy price guarantee Northern Ireland scheme is already in force, as regulations defining domestic supply were considered.
Fuel Bank Foundation issues advice on unredeemed EBSS vouchers for prepayment customers
The Fuel Bank Foundation has urged prepayment meter customers to check for and redeem their Energy Bill Support Scheme vouchers after figures showed low redemption rates in October.
Default smart meter reading frequency rule tied to 3 November 2022 installation date
Smart meters installed before 3 November 2022 default to daily readings, while those installed since, or affected by a supplier switch or contract change, default to half-hourly readings.
Energy Bills Support Scheme to begin in Northern Ireland
Households in Northern Ireland will start receiving the £400 Energy Bills Support Scheme payment from November, the Prime Minister said, months after the equivalent support began in Great Britain.
Energy Price Guarantee began lowering gas and electricity prices
The Consumer Council's Home Energy Index records that the Government Energy Price Guarantee artificially lowered gas and electricity prices in Northern Ireland from 1 November 2022 until 30 June 2023.
Energy Price Guarantee benefits begin to be passed through in Northern Ireland
Households in Northern Ireland began receiving Energy Price Guarantee support through their suppliers from 1 November 2022, with the benefit set to cover increased costs back to 1 October.
Ofgem writes to suppliers on remote switching of smart meters to prepayment mode
Ofgem has written to energy suppliers telling them to review their obligations and processes on switching smart meters to prepayment mode remotely, after a review found failings across the market.
Power NI changes bill layout for price changes
Power NI has changed how its bills show charges when a price change falls inside a billing period, splitting units and standing charges into before and after lines.
- October 2022
Energy Price Guarantee scheme documents first published
The government published the technical scheme documents for the Energy Price Guarantee on 31 October 2022, setting out the agreements behind support for household gas and electricity bills across the UK.
Which? warns hundreds of thousands of prepayment meter customers could miss government support
Which? has warned that hundreds of thousands of prepayment meter customers may miss government energy support, and called on suppliers to make sure the discount reaches them.
Ofgem price cap calculations move to quarterly
Energy UK has confirmed that Ofgem now recalculates the price cap every three months rather than every six, so sustained falls in gas prices reach household bills sooner.
Energy crisis narrows electricity to gas price ratio, strengthening heat pump running cost case
Nesta reports the electricity to gas price ratio has fallen from over 5 in 2021 to around 3.8, and to around 3.3 under the Energy Price Guarantee, improving heat pump running cost comparisons.
Energy Prices Act 2022 amendments to the tariff cap Act in force
Amendments made by the Energy Prices Act 2022 to the Domestic Gas and Electricity (Tariff Cap) Act 2018 came into force on 25 October 2022, adding a public spending consideration, a post-review statement duty and a 25 working day rule.
Energy Prices Act 2022 receives Royal Assent
The Energy Prices Act 2022 became law on 25 October 2022, giving ministers powers to run price reduction schemes for household electricity and gas in Great Britain and Northern Ireland.
Energy Costs (Pre-payment Meters and Social Tariffs) Bill receives First Reading
Kenny MacAskill's Ten Minute Rule Bill on prepayment meters and social tariffs had its First Reading on 19 October 2022, seeking to end higher standing charges for prepayment customers.
Energy Prices Bill brought from the House of Commons with Explanatory Notes published
BEIS published Explanatory Notes for the Energy Prices Bill on 18 October 2022, setting out how the Energy Price Guarantee, the Energy Bills Support Scheme and relief for businesses will work.
Chancellor Jeremy Hunt announces EPG duration reduction
Chancellor Jeremy Hunt cut the Energy Price Guarantee's duration from two years to six months on 17 October 2022, meaning the scheme that capped typical household bills at £2,500 would end in April 2023.
Chancellor statement sets end date for energy support schemes
The Chancellor's 17 October statement confirmed the Energy Price Guarantee, Energy Bills Support Scheme and Energy Bill Relief Scheme end in their current form on 31 March 2023, pending a review.
Power NI announces residential price decrease from 1 November 2022 under Energy Price Guarantee
Power NI has announced a 10 per cent cut to residential electricity bills from 1 November 2022, as the Energy Price Guarantee discount offsets an underlying tariff increase agreed with the Utility Regulator.
Energy Prices Bill introduced in Parliament
The Energy Prices Bill was introduced in Parliament on 12 October 2022 to put the Energy Price Guarantee, Energy Bill Relief Scheme and related winter payments on a legal footing.
Energy Price Guarantee regional rates page first published
The government first published its Energy Price Guarantee regional rates page on 7 October 2022, setting out the maximum unit rates suppliers could charge under the scheme in England, Scotland and Wales.
ECIU analysis finds poorly insulated band F homes cost £1,000 more to heat this year than band C homes
Analysis by the Energy and Climate Intelligence Unit finds that homes rated EPC band F will cost around £1,750 more in total energy costs this year than band C homes, split between household bills and Government support.
Scam texts impersonate the Energy Bills Support Scheme as the £400 grant rolls out
Which? has reported scam texts that impersonate the Energy Bills Support Scheme, telling recipients they are eligible for a discounted bill and linking to a fake application site as the £400 grant is paid out.
£200 energy bill reduction to begin in October 2022
A £200 reduction in energy bills for most households in Great Britain was set to begin in October 2022 under the Energy Bills Support Scheme, alongside wider measures to cut reliance on imported gas.
Autumn Statement 2022 announces EPG increase
The Autumn Statement 2022 raised the Energy Price Guarantee to £3,000 for typical annual household consumption from April 2023 and extended it to the end of March 2024.
Cap period 9a cap levels take effect
Ofgem's cap period 9a levels took effect on 1 October 2022, setting the maximum a typical dual fuel direct debit household pays at £3,549 a year until 31 December 2022.
Energy bills increased sharply
Which? has said it was encouraging households to lower combi boiler flow temperatures before energy bills rose sharply in October 2022, ahead of government guidance that December.
Energy bills to rise 64% on last winter
The End Fuel Poverty Coalition says energy bills will rise by 64 per cent against last winter within a week of the Chancellor's mini-Budget, with 6.99 million UK households forecast to be in fuel poverty.
Energy bills to rise for variable tariff customers under the Energy Price Guarantee
Households on variable tariffs face an average 27% rise in bills from 1 October 2022 under the Energy Price Guarantee, and suppliers are raising direct debits to cover the extra cost.
New energy price cap to push bills up by 80 per cent for variable tariff customers
Which? reports that the energy price cap taking effect on 1 October 2022 will raise bills by 80 per cent for households on variable tariffs, with appliance running costs rising sharply.
Energy Price Guarantee begins for domestic consumers
The Energy Price Guarantee took effect on 1 October 2022, capping the unit cost of gas and electricity so that a typical UK household pays around £2,500 a year for two years.
Energy unit prices surge overnight as Energy Price Guarantee takes effect
Combined electricity and gas unit costs rose by between 23% and 27% overnight on 1 October 2022 as the Energy Price Guarantee took effect, with the level depending on payment method and location.
Flexi variable costs updated for the quarter from 1 October 2022
ScottishPower has published the variable cost elements of its Flexi product for the quarter beginning 1 October 2022, showing changes to smart meter, balancing, distribution and transmission charges.
Fuel poverty estimates to rise with 1 October price cap change
The End Fuel Poverty Coalition estimates 21 million people in around 9 million homes will be in fuel poverty from the 1 October price cap rise, rising to 28 million people in January 2023.
GBP2,500 price freeze reported to take effect with fuel poverty still affecting millions
The End Fuel Poverty Coalition estimates 16.4 million people in 6.9 million UK households will remain in fuel poverty in winter 2022/23 even under a reported GBP2,500 price freeze.
Heating control savings estimates updated to Energy Price Guarantee gas prices
BEAMA has updated its estimates of fuel bill savings from heating control upgrades to reflect the gas prices set by the Energy Price Guarantee from 1 October 2022.
Household energy bills rose 27%
Typical household energy bills rose by 27% in October 2022, following a 54% increase in April, according to parliamentary research on domestic energy prices.
Octopus Energy identified as acquirer of Bulb
Octopus Energy was named in October 2022 as the buyer of Bulb's customers, business assets and liabilities, including customer credit balances, after a sale delayed from the summer.
Octopus Energy takes over Bulb customers
Bulb's customers were moved to Octopus Energy in October 2022 under Ofgem's Supplier of Last Resort process, ending the largest supplier failure of the energy crisis.
Policy costs removed from energy bills from October 2022
Social and Environmental Obligations were removed from household energy bills from October 2022, with the Chancellor funding the schemes through taxation instead of charging billpayers.
Price cap forecast raised to around £3,000 due to Ukraine conflict
Forecasts for the October 2022 energy price cap rose from £2,400 to around £3,000 after the conflict in Ukraine pushed up global gas prices, the Energy and Climate Intelligence Unit said.
Public spending impact added to cap statutory factors
Ofgem has confirmed that since October 2022 it must consider the effect of the energy price cap on public spending when setting the cap level.
New unit rates and standing charges take effect under the EPG
From 1 October 2022 the Energy Price Guarantee replaced the planned price cap, setting variable tariff unit rates at around 34p per kWh and standing charges at 46p per day for direct debit customers.
- September 2022
Citizens Advice calls for winter moratorium on prepayment meter installations
Citizens Advice has called for a winter moratorium until April 2023 on moving customers to prepayment meters under warrant and on switching smart meters to prepay to recover debt.
Welsh Fuel Support scheme opens for applications
The Welsh Fuel Support scheme opened for applications on 26 September 2022, paying eligible households a one-off £200 from their local authority towards winter fuel bills.
Energy Bills Support Scheme ministerial direction published
The government has published the ministerial direction that puts the Energy Bills Support Scheme on a legal footing, requiring domestic electricity suppliers to pay the £400 discount to eligible households.
Government confirms energy bill support for Northern Ireland and off-grid homes
The government has confirmed Energy Price Guarantee support, the £400 Energy Bill Support Scheme discount and a £100 alternative fuels payment for Northern Ireland and off-grid households.
Analysis updated for Energy Price Guarantee announcement
The Energy and Climate Intelligence Unit has updated its analysis of home insulation costs to reflect the Energy Price Guarantee, finding that Treasury could recover insulation spending through lower bills by early 2025.
Government announces two-year Energy Price Guarantee at £2,500 for typical household from 1 October 2022
The government has announced an Energy Price Guarantee limiting a typical UK household to £2,500 a year for two years from 1 October 2022, superseding the energy price cap.
UK Government confirms energy bills freeze at average £2,500 a year for Great Britain
The UK Government has confirmed average gas and electricity bills in Great Britain will be frozen at £2,500 a year, with the £400 rebate retained and a new fund for heating oil customers.
Liz Truss announces energy support package
Liz Truss has announced an energy support package setting the Energy Price Guarantee at £2,500 a year for the average Great Britain home, capping business costs for six months and lifting the fracking ban.
Citizens Advice published Out of the cold calling for a winter moratorium on forced prepayment meter installation
Citizens Advice has called for a winter moratorium on the forced installation of prepayment meters, warning that millions of households are disconnecting because they cannot afford to top up.
Green levies to be moved from bills to general taxation
Liz Truss confirmed that green levies which partly pay for insulating poorer homes will move off household energy bills and onto general taxation, a change backed by NGOs and the energy industry.
Warm This Winter petition passes 110,000 signatures shortly after launch
The Warm This Winter petition passed 110,000 signatures within days of launching, as the End Fuel Poverty Coalition estimated 12 million UK households would face fuel poverty this winter.
- August 2022
JRF publishes energy price analysis of August 2022 price cap and Cornwall Insight forecasts
The Joseph Rowntree Foundation has published a briefing on the August 2022 Ofgem price cap and new Cornwall Insight forecasts, warning that low-income households face severe financial harm.
Ofgem publishes default tariff cap levels for cap period 9a
Ofgem has set the default tariff cap for 1 October to 31 December 2022 at £3,549 a year for a typical dual fuel direct debit household, an increase of 80 per cent.
Period 9a cap level announced with separated additional risk allowance approach
Ofgem has set out how it split the wholesale additional risk allowance into two parts for the October to December 2022 price cap, to prevent suppliers recovering more than the efficient cost of hedging.
Warm This Winter campaign launches in response to energy bills crisis
The Warm This Winter campaign launched on 26 August 2022, demanding emergency financial support, funded home insulation and a faster shift from gas to renewables as energy bills rose.
Resolution Foundation publishes report on policy options for soaring energy prices
The Resolution Foundation has published a report setting out policy options for soaring energy prices, proposing either a social tariff for poorer households or universal price cuts recouped through income tax.
Ofgem decides against moving supplier failure costs out of standing charges
Ofgem has decided not to move the costs of supplier failures out of electricity standing charges and onto unit prices, saying high energy users including disabled and elderly consumers would be unfairly disadvantaged.
Which? responds to Ofgem decision to continue recovering supplier failure costs via standing charge
Which? has responded to Ofgem's decision to keep recovering the costs of supplier failures through the standing charge, calling for an urgent review of how bills can be made fairer.
Poorly insulated homes to pay £1,000 more on gas bills this winter
ECIU analysis published on 10 August 2022 finds homes rated EPC band F face a gas bill £968 higher than band C homes this winter, as the price cap is forecast to reach £3,958.
Which? responds to £5,000 energy bill estimates with call for more support
Which? has called on the government to increase financial support for households after estimates suggested energy bills could reach £5,000, saying existing help will not cover predicted rises.
Citizens Advice says latest price cap forecasts show no time to waste on further support
Citizens Advice has responded to the latest Cornwall Insight price cap forecast by calling on the government to raise benefits in line with the cost of living, saying there is no time to waste.
Cornwall Insight publishes new price cap forecasts
Cornwall Insight's 9 August 2022 forecasts put the October 2022 price cap at £3,582, rising to £4,266 in January 2023 and peaking at £4,426 in April 2023.
JRF estimates cost of living increase of £2,550 between 2021/22 and 2022/23
The Joseph Rowntree Foundation estimates household costs will rise by £2,550 between 2021/22 and 2022/23, with energy accounting for £1,550 of that increase.
Ofgem moves default tariff cap to quarterly updates
Ofgem confirmed in August 2022 that the default tariff cap would be updated every three months instead of every six, changing how often household energy prices are reviewed.
Ofgem decides to use a lower quartile benchmark for unexpected SVT demand costs in the default tariff cap
Ofgem has decided to add £41 to the default tariff cap for typical dual fuel non-prepayment customers from 1 October 2022, using a lower quartile benchmark for unexpected standard variable tariff demand costs.
- July 2022
Government confirms delivery details of £400 Energy Bills Support Scheme
BEIS has confirmed that the £400 Energy Bills Support Scheme will be paid in six monthly instalments from October 2022, setting out how each payment method will receive the discount.
Which? responds to concerns that support on energy bills is outdated
Which? has called on Ofgem to penalise underperforming energy suppliers and to work with government and suppliers on targeted bill support, saying customers are struggling to understand bills and pricing.
NEA projects 8.2 million UK households could be in fuel poverty from October
National Energy Action has projected that 8.2 million UK households, one in three, could be in fuel poverty from October if the price cap takes average annual bills to £3,250.
NEA publishes response to Ofgem retail financial resilience and Direct Debit consultation
The National Energy Action charity has told Ofgem that proposed financial resilience rules for suppliers should only go ahead if they do not push up the price cap, while backing stronger Direct Debit rules.
Ember analysis attributes 80% of UK wholesale electricity price rise to fossil gas
Ember analysis finds fossil gas caused 80 per cent of the rise in UK wholesale electricity prices between July 2021 and June 2022, with gas adding £93/MWh to a £120/MWh increase.
Welsh Government extends Fuel Support Scheme to more than 400,000 households with £90m investment
The Welsh Government is investing £90m in its Fuel Support Scheme, extending a £200 payment to more than 400,000 low-income households in Wales from autumn 2022.
JRF publishes energy price analysis of July 2022 price cap
The Joseph Rowntree Foundation has published a briefing on the July 2022 Ofgem price cap and new Cornwall Insight forecasts, setting out what low and middle income families are expected to spend on gas and electricity.
Ofgem CEO tells MPs October cap rise will exceed previous prediction
Ofgem's chief executive told MPs the October price cap will rise by more than the £800 previously predicted, as forecasters put winter bills near £3,300.
Cornwall Insight raises price cap forecast to average £3,304
Cornwall Insight raised its forecast for the October 2022 and January 2023 price caps to £3,245 and £3,634, an average of £3,304, as gas costs drive the increase.
Ofgem launches review of arrangements for recovering the costs of supplier failure
Ofgem has closed its review of how the costs of supplier failure are recovered, deciding to keep the existing methodology rather than move recovery onto unit rates.
Energy Bill [HL] 2022-23 introduced in the House of Lords
The Energy Bill was introduced in the House of Lords on 6 July 2022, with measures on heat networks, smart appliances, building energy performance and business energy audits.
NEA publishes report calling for a new social tariff in the energy market
National Energy Action has published a report arguing that the government must create a social tariff, a discounted energy deal for low income households, to cut bills during the cost of living crisis.
BEIS publishes Energy Bill summary impact assessment
BEIS has published a July 2022 summary impact assessment for the Energy Bill, setting out net present values, business costs and consumer bill impacts across 30 measures.
Central Switching Service introduced
The Central Switching Service began operating in July 2022, cutting the time a household needs to change energy supplier to five working days, according to the body that runs the national smart meter network.
Flexi variable costs updated for the quarter from 1 July 2022
ScottishPower has published the variable cost components of its Flexi tariff for the quarter beginning 1 July 2022, with Balancing Services Use of System falling and several regional distribution standing charges changing.
Ofgem announces urgent review of direct debit increases
Ofgem has announced an urgent review into energy direct debits rising faster than the price cap, finding flawed processes and weaknesses in how suppliers set customer payments.
- June 2022
Citizens Advice responds to BEIS consultation on changes to the Energy Bills Support Scheme
Citizens Advice has backed the government's decision to raise the Energy Bills Support Scheme payment to £400 and make it a grant, while warning that prepayment meter customers and those in arrears could miss out.
Citizens Advice launches Energy Price Support Review with SMF and Public First
Citizens Advice has announced an Energy Price Support Review with the Social Market Foundation and Public First, to report in Spring 2023 on long-term help for households struggling most with energy bills.
Citizens Advice warns 585,000 private renters risk missing energy bill support
Citizens Advice says 585,000 private renters whose landlords control their energy bills may be unable to claim the £150 Warm Home Discount and the £400 grant due in October.
Average bill estimates published for UK households
Energy Helpline has published estimated annual and monthly gas and electricity bills for UK homes using June 2022 prices, putting a three-bed home at £1,793.21 a year and a one to two bedroom home at £1,178.16.
- May 2022
EBSS doubled to £400 and made non-repayable
The Chancellor doubled the Energy Bills Support Scheme to £400 on 26 May 2022 and made it a non-repayable grant, replacing the original £200 discount that households would have repaid.
Government announced £400 grant for domestic electricity customers
The government confirmed on 26 May 2022 that domestic electricity customers would receive £400 of support with their energy bills, paid as a grant rather than a repayable reduction.
Government announces cost of living package funded partly by windfall tax
The Chancellor announced a £15bn package of support for households on 26 May 2022, including a £400 energy grant, a £650 payment for means tested benefit claimants and a 25% levy on oil and gas profits.
Government announces energy bills support measures in House of Commons
The End Fuel Poverty Coalition has written to the Chancellor listing ten unanswered questions about the energy bills support announced in the House of Commons on 26 May 2022, warning it will not fix fuel poverty.
Ofgem chief tells MPs October price cap likely to rise to about £2,800
Ofgem's chief executive told MPs the household energy price cap is likely to rise to about £2,800 in October, an increase of roughly £800 on the level then in force.
Ofgem opens consultation on possible wholesale cost adjustment to the default tariff cap
Ofgem has opened a consultation on whether suppliers face extra efficient wholesale costs beyond the default tariff cap, covering cap periods eight and nine, with responses due by 14 June 2022.
NEA responds to BEIS consultation on Energy Bills Support scheme
National Energy Action has told BEIS that its Energy Bills Support scheme has significant deficiencies, warning that the poorest households may receive less or no benefit while paying for it.
Chancellor announces enhanced package of customer support
Energy UK said international wholesale gas prices compounded by the Russian invasion of Ukraine led the Chancellor to announce an enhanced package of customer support, but called it a missed opportunity on energy efficiency.
Government announced intention to legislate to extend price cap beyond 2023
The government said in May 2022 that it intended to legislate to allow the default tariff price cap to continue beyond 2023, as the National Audit Office counted 29 supplier failures since July 2021.
Ofgem announces plans for quarterly price cap review
Ofgem has announced plans to move the price cap to a quarterly review, so that changes in wholesale gas and electricity costs, including falls, reach customer bills sooner.
- April 2022
Winter Fuel Support Scheme payment widened and planned for later in 2022
National Energy Action says the Welsh Government will make a further Winter Fuel Support Scheme payment later in 2022, widened to reach more low-income households including pensioners eligible for Pension Credit.
BEIS to publish proposals on rebalancing energy bill costs in 2022
The government's Energy Security Strategy commits to rebalancing costs on energy bills away from electricity, with BEIS to publish proposals in 2022, alongside VAT-free home energy saving measures for five years.
Chancellor announces £9.1 billion energy bills support package
The Chancellor has announced a £9.1 billion package of support to help more than 28 million households with rising energy bills, alongside a £200 reduction in domestic electricity bills from October 2022.
Direct debit increases far above price cap rises reported after April 2022 review
After the April 2022 price cap rise, some households saw direct debit increases far above the cap, prompting an Ofgem review that found flawed supplier processes.
Domestic energy cap rise worsens household energy bills
The Welsh Government extended its Fuel Support Scheme to more than 400,000 low-income households with £90m, citing higher bills worsened by the April domestic energy cap rise.
Electricity standing charges jumped by more than 80% in April 2022
Electricity standing charges under the price cap rose by more than 80% in April 2022, driven mainly by supplier of last resort costs added to network cost allowances.
GGL allowance applies from cap period eight starting 1 April 2022
Ofgem has decided to add a Green Gas Levy allowance to the default tariff cap from cap period eight, which began on 1 April 2022, at about £2.69 per gas meter.
UK Government announces energy support package for Great Britain households
The UK Government announced a package of support for almost all households in Great Britain in April 2022, including the £400 Energy Bills Support Scheme and an Energy Price Guarantee capping a typical bill at £2,500.
Government renames Energy Bills Discount as the Energy Bills Support Scheme
The Government published an explainer on 1 April 2022 renaming the Energy Bills Discount as the Energy Bills Support Scheme, the £400 grant later paid to households over winter 2022-23.
Ofgem price cap increase to coincide with predicted rise in child fuel poverty to over 2.5m households
End Fuel Poverty Coalition calculations predict more than 2.5 million households with children will be in fuel poverty from 1 April 2022, when the next Ofgem price cap increase takes effect.
Prepayment meter average bills set to rise to £2,017
Average prepayment meter bills under the price cap were set to rise from £1,309 to £2,017 from 1 April 2022, as Ofgem raised the cap by 54 per cent.
- March 2022
British Gas adds £2 million to Support Fund, taking it to £6 million
British Gas Energy has added £2 million to its Support Fund, taking it to £6 million, to help customers struggling to pay energy bills as living costs and inflation rise.
Supplier websites and apps fail under meter reading demand
British Gas, EDF, Eon and Octopus reported website and app problems on 31 March 2022 as households rushed to submit meter readings before the energy price cap rose the next day.
JRF publishes energy price analysis of March 2022 price cap
The Joseph Rowntree Foundation has published analysis of the March 2022 price cap finding low-income households face sharply higher energy costs even after the support package announced in February.
Funding paid to billing authorities
The government paid Council Tax Rebate funding to English billing authorities in March 2022, ahead of £150 payments to households in bands A to D from April.
- February 2022
Investec Bank Ltd estimates October 2022 price cap could exceed £3,000 per household
Investec Bank Ltd estimated on 24 February 2022 that the October price cap could rise another 50% to more than £3,000 per household, prompting charity warnings on fuel poverty.
Price cap increase announced to apply from April
Energy UK has noted the announcement of an increase in the energy price cap that will apply from April, published alongside a parliamentary inquiry into decarbonising heat in UK homes.
Ofgem decides to include Green Gas Levy allowance in default tariff cap from cap period eight
Ofgem has decided to add a Green Gas Levy allowance of about £2.69 per gas meter to the default tariff cap from April 2022, recovering scheme costs dating back to October 2021.
Ofgem decides to proceed with licence modification enabling in-period adjustments to the default tariff cap
Ofgem has confirmed it will change supply licences so it can recalculate the default tariff cap inside a cap period, under five tests, in exceptional circumstances.
Ofgem publishes policy consultation on medium term price cap changes
Ofgem has published a policy consultation on medium term changes to the energy price cap, proposing quarterly updates, a reduced notice period and a backwardation mechanism.
Chancellor announces Energy Bills Rebate support package
Chancellor Rishi Sunak announced an Energy Bills Rebate on 3 February 2022, comprising a £200 energy bills discount and a £150 council tax rebate, after Ofgem confirmed a 54% rise in the price cap.
Energy bills support package announced
The government announced a £150 council tax rebate for households in England in bands A to D and a £144 million discretionary fund on 3 February 2022, as part of support for rising energy costs.
Energy price cap increase announced
Turn2us has responded to the announcement of a higher energy price cap, warning that millions of households face uncertainty over their finances and calling for more targeted government support.
Energy price cap increase announced
Nesta has responded to the announcement of an increase to the energy price cap, calling the UK's energy price crisis a global gas crisis and pointing to home heating as the source of the solution.
Government announces £693 energy price cap rise and bill support measures
Citizens Advice has called the government's package of support for a £693 rise in the energy price cap strange, complicated and untargeted, as record numbers seek crisis help.
NEA calls UK Government energy crisis measures woefully inadequate
National Energy Action has called the UK Government's £200 rebate and Council Tax support woefully inadequate, saying prepayment households still face a gap of more than £500 a year.
OFGEM announces 54% energy price cap rise
Ofgem has confirmed a 54% rise in the energy price cap, taking average direct debit bills to as much as £1,971 from April and prepayment bills to £2,017.
Bulb collapse takes households affected by failed suppliers above 3.7 million this year
Green Alliance says 21 energy suppliers have collapsed since the start of September, and that Bulb's failure has taken the number of households affected by a failed supplier above 3.7 million this year.
Energy Bills Support Scheme announced with £400 electricity bill discount
The Government's Energy Bills Support Scheme, first announced in February 2022, provided a £400 discount on electricity bills to households as energy prices rose sharply.
February 2022 wholesale decision placed cap period seven adjustment in additional risk allowance
Ofgem has confirmed that the adjustment for cap period seven wholesale costs will stay inside the additional risk allowance, with no proposal to move it.
Green Alliance publishes briefing on protecting consumers from high energy bills
The Green Alliance has published a briefing on protecting consumers from high energy bills, setting out the causes of the 2021 price spike and what it says should happen next.
Ofgem decides to add SoLR charge to domestic gas unit rates
Ofgem confirmed in February 2022 that the costs of supplier failures would be recovered through a volumetric charge on domestic gas unit rates, adding to household bills.
Ofgem decides in-period adjustments to the Default Tariff Cap will be forward looking only
Ofgem has decided that any in-period adjustment to the Default Tariff Cap will apply only for the remainder of the cap period, not retrospectively, under a new licence power.
Ofgem previously set a £12 additional electricity shaping and imbalance allowance
Ofgem concluded in its February 2022 wholesale decision that electricity shaping and imbalance costs exceeded the price cap methodology, adding a £12 allowance recovered across cap periods eight and nine.
- January 2022
NEA Northern Ireland welcomes launch of DfC Emergency Fuel Payment Scheme but says £2M budget falls short
National Energy Action Northern Ireland has welcomed the Department for Communities Emergency Fuel Payment Scheme for 20,000 households but says its £2 million budget falls far short of what is needed.
NEA responds to Ofgem consultation on short term price cap changes
National Energy Action has told Ofgem that doing nothing is the best of the short term price cap options for fuel poor households, opposing exit fees on standard variable tariffs.
E3G publishes briefing on responding to the energy bill crisis
E3G has published a briefing setting out near-term actions to protect households from sharp energy price increases and longer-term priorities to rebuild for resilience.
Compensation window opens for forced prepayment meter installations
Ofgem has opened a compensation route for households forced onto prepayment meters between 1 January 2022 and 21 January 2023 where suppliers broke the installation rules.
Power NI raises domestic electricity prices by 21.4%
Power NI raised domestic electricity prices by 21.4 per cent from 1 January 2022, adding £131 a year to the average household bill in Northern Ireland.