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Energy price guarantee: exact amount that households will pay in energy bills

Downing Street said the period of mourning for the Queen’s death should not affect Liz Truss’ new energy plan

Households subject to the Ofgem energy price cap will have their bills frozen from October under the Prime Minister’s new policy.

It means a planned price cap hike in October, which is expected to see average annual energy bills hit £3,549, has been averted.

The policy will see the government limit the price energy suppliers can charge customers for gas units, replacing the existing price cap set by regulator Ofgem. Ministers will then provide suppliers with the difference between the new lower price and what they would charge if this was not in place.

The government has now confirmed the exact amount that households will pay for energy from October under the energy price guarantee, depending on the type of accommodation.

Liz Truss has announced that the typical household energy bill will be capped at £2,500 a year from October 1 (Composite: Kim Mogg/NationalWorld)

How much will households pay for energy?

The government said a typical house would save £1,000 on average when the policy comes into effect in October, while the typical flat would save £700.

You will find a breakdown of the average costs for different types of properties, outlining the savings made under the energy price guarantee.

Individual houses

A typical detached house will pay £3,300 in gas and electricity bills a year from October 1.

Under the October price cap, households would have had to pay £4,700 a year. This means the average single household will save £1,400 under the government guarantee.

Semi-detached houses

A typical detached house will pay £2,650 in gas and electricity bills a year from October 1.

Under the October price cap, households would have had to pay £3,800 a year. This means the average matched household will save £1,150 under the government guarantee.

End-terrace

A typical terraced house will pay £2,450 in gas and electricity bills a year from October 1.

Under the October price cap, households would have had to pay £3,500 a year.

This means the average terraced household will save £1,050 under the government guarantee.

mid-terrace

A typical terraced house will pay £2,350 in gas and electricity bills a year from October 1.

Under the October price cap, households would have had to pay £3,300 a year.

This means the average terraced household will save £950 under the government guarantee.

Bungalow

A typical bungalow will pay £2,450 in gas and electricity bills a year from October 1.

Under the October price cap, households would have had to pay £3,500 a year.

This means the average bungalow will save £1,050 under the government guarantee.

Converted apartment

A typical converted flat will pay £1,950 in gas and electricity bills a year from October 1.

Under the October price cap, households would have had to pay £2,750 a year.

This means an average converted flat will save £800 under the government guarantee.

Purpose built apartment

A typical purpose-built apartment will pay £1,750 in gas and electricity bills a year from October 1.

Under the October price cap, households would have had to pay £2,400 a year.

This means the average purpose-built apartment will save £650 under the government guarantee.

The guarantee limits the amount that households can charge per unit of gas or electricity, which means that the exact amount of your bill will be influenced by the amount of energy you use.

Households do not need to request the energy price guarantee and do not need to contact their energy supplier.

Consumers in England, Scotland and Wales who pay for their energy by monthly, quarterly or other bill will have the energy price guarantee applied when calculating bills.

Due to the different energy system in Northern Ireland, the government is working with partners, including the NI Utility Regulator and NI energy providers, to ensure that a fair level of support can be provided to consumers and businesses in North Ireland.

Will the freezing of energy bills continue despite the Queen’s period of mourning?

Downing Street has assured it does not believe the period of mourning for the Queen’s death will impact Ms Truss’s new policy to prevent average energy bills from rising above £2,500.

The Prime Minister’s official spokesman said on Friday that Britain’s two-year energy price guarantee will be ready for households from October 1 as planned.

Officials are working behind the scenes to develop a six-month strategy to support businesses through the gas crisis and come up with a plan for Northern Ireland, as part of the multi-billion pound package.

Chancellor Kwasi Kwarteng will also have to find a date to reveal his emergency financial package as the policy normally pauses for around 10 days while the House of Commons is suspended.