Has Liz Truss really helped to alleviate the pressures of the energy crisis?

Today, Thursday 8th September 2022, Liz Truss announces her resolve for the energy crisis. What does it mean to you, and does it really help?

Millions of energy consumers have been worrying for many months about the affordability of what should simply be affordable for all. Gas and electricity has become unaffordable in many instances.

Cutting back on energy consumption is important, but not to the extent that people are left freezing throughout the Winter months. Keeping warm should not be a luxury in these modern times, it should be a basic human right!

What is the energy price cap?

The price cap was introduced by OFGEM in 2019. It was put in place to prevent energy suppliers from charging consumers excessive prices. This applies to the Standard Variable Tariff.

What is the capped price based on?

The price for energy is based on what you actually consume. The price cap is calculated on average usage which is: Gas 12000 KWH. Electricity 2900 KWH. So, if you did use this exact amount of gas and electricity, you would pay the actual price which is published as the cap. You will pay less if you use less, and you would pay more if you use more.

New Price Cap announced by Liz Truss

The adjusted price cap from 1st October 2022 has been set at £2500. This cap has been put in place to last for two years.

Unit rates for newly advised cap rate

These are the average unit rates. Your supplier will soon let you know what your actual unit rate will be.