Ofgem’s energy price cap limits the amount suppliers can charge for each unit of gas and electricity, as well as the standing charge they set for each fuel.
Energy bills are set rise to an average of £2,500 a year from £1,971 on October 1 which is the average price a household with typical usage will pay.
However, people could pay more than this if they are high users, and those who switched to an expensive fixed rate tariff before Liz Truss’ announcement last week, may end up paying even more due to the way the discount is applied.
While energy bills are around three times higher than this time last year, capping bills at £2,500 will save people £1,000 on average.
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