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Energy Price Guarantee
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Regulation and policy
How effective were the UK’s energy bill support schemes?
Introduced during a period of record high energy prices, the UK Government's energy support schemes came to an end on 31 March this year. Evaluating emergency measures such as these purely on their value for money is difficult, as the policy was intended to serve multiple purposes. At the time...
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Home supply and services
Fixed tariffs and collective switching return to the market
With the Default Tariff Cap falling by 17% compared to the Energy Price Guarantee (EPG) at the start of the month, there has been a great deal of attention around the possible return of fixed tariffs for domestic consumers. Several fixed tariffs were indeed launched in recent weeks, representing a...
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Regulation and policy
Our response to the Spring Budget
Once again, a UK budget has seen some significant energy policy announcements that will stir up conversation and opinion across the country. It also shows how reining in energy prices is seen as key to restraining inflation. The pre-budget announcement to maintain the Energy Price Guarantee (EPG) at £2,500 had...
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Home supply and services
Our response to the publication of the REMA consultation summary
On 7th March the government published the summary of responses received from its Review of Electricity Market Arrangements (REMA) consultation. The responses received showed the industry has expressed strong support (92% agreement) for energy market reform that prioritises decarbonisation, security of supply, and cost-effectiveness. Respondents also agreed that the current...
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Home supply and services
Our response to the announcement of the April price cap
The predictions for the Default Tariff Cap in this piece are out of date, please click here to find our latest forecasts and commentary on the cap. Following the announcement by Ofgem that April’s Default Tariff Cap (price cap) will fall to an average £3,280 per year, nearly a £1,000 drop for...
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Home supply and services
Our final forecast for the April price cap
The predictions for the Default Tariff Cap in this piece are out of date, please click here to find our latest forecasts and commentary on the cap. We have released the final prediction for the April Default Tariff Cap (price cap) following the closure of the observation window1, on 17 February. We...
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Regulation and policy
What are social tariffs and why might we need them?
As the government’s primary tools for mitigating high consumer energy bills are expected to end in April 2024, and with the Autumn Statement’s mention of a “new approach to consumer protection” many are discussing the future of the UK’s energy bill support mechanisms. Given the Statement’s express mention of “social...
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Business supply and services
Predicted fall in the April 2023 Price Cap but prices remain significantly above the EPG
The predictions for the Default Tariff Cap in this piece are out of date, please click here to find our latest forecasts and commentary on the cap. Our latest Default Tariff Cap (price cap) forecasts for April – June 2023 (Q223) have dropped by over £600 since the last widely released figures...
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E-mobility and low carbon
Welcome Break: public EV charging prices and energy bill relief
The energy crisis has pushed up prices for drivers charging their EVs on the public network. A depressing milestone was passed last month, when a public charging operator (CPO) had to increase its prices to a new high of £1/kWh. Many others have also put through significant increases, as regular...
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Regulation and policy
Energy Price Guarantee to end in April
I was not surprised by the announcement from the Chancellor today (17/10) regarding the shortened time period in which the domestic Energy Price Guarantee (EPG) will apply, for all the reasons discussed in our report - Energy Price Guarantee - Counting the Cost - and my accompanying blog. Our report...
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Regulation and policy
Government to consult on the introduction of Cost-Plus-Revenue Limit
The government issued its Energy Prices Bill on 12 October. The bill will put in law a number of the already-announced mechanisms that will be used to support households and businesses this winter including the Energy Price Guarantee and the Energy Bill Relief Scheme. Also announced alongside this is the...
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Regulation and policy
New customer support schemes will need very careful management
1 October 2022, marked a momentous day for the British retail energy markets, indeed for the nation as a whole. On that Saturday the Energy Price Guarantee (EPG) commenced for household customers and the Energy Bill Reduction Scheme (EBRS) for businesses. Not since March 1990 have ministers had so much...
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Regulation and policy
Energy Price Guarantee – Counting the Costs
Modelling from Cornwall Insight has forecast the two-year cost of the Energy Price Guarantee (EPG) to be between £72bn in the lowest case scenario, and £140bn in the extreme high case scenario1. The data included in our new EPG report ‘Counting the Costs’, shows a near doubling of the forecasts...
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Regulation and policy
One-hit wonder? Assessing the government’s business support scheme
Subsidising the unprecedented cost of energy for both households and businesses came in at the forefront of the Chancellor of the Exchequer, Kwasi Kwarteng’s “mini-budget” last Friday. Described as “one of the biggest interventions ever made”, Kwarteng confirmed a three-step plan. Firstly, as announced on 8 September, the introduction of...
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Business supply and services
The Energy Price Guarantee, a Path Through Stormy Seas?
Upon taking office on 6 September 2022, the first piece of major policy introduced by the new Prime Minister, Liz Truss, is the Energy Price Guarantee (EPG), announced on 8 September 2022. The EPG is a series of support measures targeted at protecting domestic and business consumers from soaring energy...
