This means that the average household would have to pay £2,500 a year on their energy bills over the next two years, saving consumers an immediate £1,000 a year.
This takes into account the temporary removal of green levies, worth around £150, from household bills and comes on top of the £400 universal household support we previously announced – together they will bring the costs closer to the current energy price ceiling.
It’s not just households that are suffering. Businesses are also experiencing significant increases in energy costs – in some cases by more than 500 pc.
That’s why last week the government also launched a groundbreaking scheme offering equal support to all UK businesses, charities and public sector organizations to protect those at the heart of the economy from rising bills .
From local fish and chips to churches, schools, nursing homes and medical practices, we step in to support growth, prevent unnecessary insolvencies and protect jobs.
The Energy Bill Relief Scheme is giving businesses the protections and certainty they need over the next six months, with savings to be seen for the first time in October bills.
It is reassuring that businesses and other non-domestic users will not fall overboard in April.
The government will review how the program works in three months to inform decisions on future and targeted support after March 2023, so organizations have certainty well in advance.
The review will place particular emphasis on identifying how best to help the most vulnerable non-residential customers, for example those least able to reduce their energy consumption or increase their energy efficiency. , such as the hotel industry.
While this immediate and temporary action is a lifeline for many families and businesses, it’s not about throwing money at the problem or simply applying a band-aid.
This is the first step before rebuilding the country’s energy system. Although it is an energy-rich country, the reliance on uncertain foreign supplies at volatile prices has created a potentially ruinous level of risk that needs to be reduced.