The Energy Price Guarantee (EPG) will rise to £3,000 in the spring and be extended for a further 12 months, under measures set out in Chancellor Jeremy Hunt's autumn statement. The Chartered Institute of Plumbing and Heating Engineering (CIPHE) responded to the statement on 21 November 2022, saying the announcement "is just the start of a long journey for the economy, but more immediate attention is required to reduce the ever-present threat of fuel poverty for struggling households"1.
The Energy Price Guarantee caps the unit cost of domestic energy. Under the change, the guarantee level moves to £3,000 in the spring, and the scheme runs for another 12 months beyond its original end date1. The CIPHE said that with the EPG "being raised to £3,000 in the spring whilst being extended for another 12 months", domestic consumers are "looking at increases of 164% in just two short years"1.
Kevin Wellman, Chief Executive Officer at the CIPHE, said the statement was a first step but that gaps remained. The institute, an educational charity, said its main concern was for households facing fuel poverty over the winter and potentially for years afterwards, citing rising energy, mortgage and food costs alongside low incomes, poor living conditions, age and health concerns1.
"With the energy price guarantee (EPG) being raised to £3,000 in the spring whilst being extended for another 12 months, domestic consumers are looking at increases of 164% in just two short years."
The CIPHE also pointed to increases in taxes and a soaring inflation rate, and asked where this leaves households already unable to pay more. It warned that failing to stem fuel poverty would lead to more illness, greater pressure on the NHS and, in some cases, preventable deaths1.
| Element | Position reported |
|---|---|
| EPG level from spring | £3,000 |
| Extension | A further 12 months |
| Two-year rise for domestic consumers | 164% |
Why it matters for households
The EPG sets the maximum unit rate a household pays for gas and electricity, so raising the level to £3,000 means the support is less generous from the spring: a household using a typical amount of energy pays more of its bill itself. Extending the scheme for 12 months keeps the cap in place for longer than originally planned, so the protection does not lapse at the point it was first due to end1.
For a home's energy independence, the practical effect is that a larger share of the cost of heating and power falls on the occupant rather than being absorbed by the guarantee. The CIPHE's 164% figure describes the scale of the increase in domestic costs over two years, which is the backdrop against which any household decision about usage, insulation or generation is made1. The Energy Bills and Energy Independence guide sets out how bill support and household self-supply interact, and the bills-price-cap hub covers the wider cap framework.
What happens next
The EPG rises to £3,000 in the spring and then runs for another 12 months1. The CIPHE has urged the government to acknowledge the situation for Britain's most vulnerable households and to take whatever steps are necessary to protect them against costs, warning of knock-on effects on illness, NHS pressure and preventable deaths if fuel poverty is not stemmed1. No further dates for the change have been reported.