The Chancellor's statement of 17 October 2022 confirmed that the Energy Price Guarantee (EPG), the Energy Bills Support Scheme (EBSS) and the Energy Bill Relief Scheme (EBRS) are due to end in their current form on 31 March 2023, subject to a government review1. Consumer Scotland, the independent consumer body, set out the consequences in a blog published on 18 October by its chief executive, Sam Ghibaldan1.
The review is intended to "design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need"1. Consumer Scotland said many consumers will face ongoing uncertainty over their energy bills pending its outcome1.
"Following the new Chancellor's statement yesterday all these schemes are due to end in their current form on 31 st March next year."
Consumer Scotland said that from 1 October consumers have faced bills nearly double the rate they were in March, and 25 per cent more than the previous month1. It cited the price cap at £1,277 per annum as of 1 October 2021 and £1,971 per annum as of 1 April 20221. Pre-payment meter customers are much more likely to be in fuel poverty than those on direct debit, at 36 per cent compared with 22 per cent1.
For households off the gas grid, Consumer Scotland said the 183,000 households in Scotland reliant on solid and liquid fuels for heating face significant uncertainty, most of them rural and many in colder, wetter climates in the north1. Their fuel markets are unregulated, with fewer protections than for gas consumers, and liquid fuel prices rose by 129 per cent in the 12 months to June 2022 before falling recently1. The mini-budget provided for "equivalent support" for unregulated fuel consumers, but Consumer Scotland said it appears they are only being offered £100 per household, against higher support for consumers connected to the gas grid1.
On business support, the EBRS is initially for six months, and the UK Government has promised to review it after three months to inform any extension after March1. Consumer Scotland cited an ONS business insight survey in which over a quarter of Scottish businesses cited energy prices as their biggest concern and over 52 per cent reported being affected by the increase in energy prices in some way1.
| Scheme | Current form ends |
|---|---|
| Energy Price Guarantee (EPG) | 31 March 20231 |
| Energy Bills Support Scheme (EBSS) | 31 March 20231 |
| Energy Bill Relief Scheme (EBRS) | 31 March 20231 |
Why it matters for households
The Energy Price Guarantee and the EBSS payments are the two mechanisms holding most household bills below the level the price cap would otherwise set, and both are now dated to 31 March 2023 in their current form1. What replaces them has not been reported; the review's outcome is the open question, and Consumer Scotland's stated concern is that consumers face uncertainty in the meantime1.
The practical effect differs by how a home is heated and how it pays. Households with higher than typical demand, including those in energy inefficient homes, are less likely to see the EBSS offset the underlying increase in energy costs1. Pre-payment meter customers pay at rates nearly double those of the previous winter and, if unable to top up, may be left without essential heat and power1. Off-gas-grid homes buying solid and liquid fuels have fewer protections and, on Consumer Scotland's account, a smaller support offer1. That gap bears directly on a home's energy independence: the less a household relies on a single regulated fuel and the better its fabric performs, the less exposed it is to a scheme ending.
What happens next
The UK Government has promised to review the EBRS after three months to inform any extension after March1. Consumer Scotland said it will conduct research and work with advice providers over the coming months to develop its analysis of consumers' needs in Scotland, to contribute to wider policy initiatives and to the UK government's review of its energy support schemes1.