Counting the costs

In its first month in office, the Truss Government has introduced policies to address
the cost of the energy crisis. On the domestic front, the Energy Price Guarantee
(EPG) has been implemented as a support scheme for households due from 1
October 2022 and for the next two winters.

In this paper, our experts have applied modelling and qualitative analysis to identify what the difference may be between the EPG price levels and the potential costs of energy for consumers across the intended two years of the scheme. We have produced four scenarios, relying on our proprietary wholesale price modelling in conjunction with our assessment of the Default Tariff Cap.

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