Energy price cap approved by MPs - how much will it save you?
After months of talk, the energy price cap took a massive step forward this week, with 11 million households set to benefit.
On Wednesday night, MPs and Lords gave the go-ahead for the Energy Price Cap bill.
BUT - the actual price cap won’t come into effect until the end of the year.
* Big Six warned not to interfere with energy price cap
* 25 price hikes this year, as Co-operative Energy joins the bandwagon
* Energy bills are increasing by up to 26% for customers on these tariffs
How much will it save me?
Let’s not beat around the bush – what you really want to know is how much this will save you.
Ofgem won't say how much the cap will actually save households - but early estimates put the cap at a saving of £100 per year.
It will only apply to people on standard tariffs - these are what you get put on when your fixed deal ends (They're also significantly more expensive).
Is that a good deal?
It’s better than nothing – but many of the people set to benefit could actually save a lot more if they switched suppliers.
According to Ofgem – the 11 million households who would benefit are paying about £350 more than the cheapest rate available.
Why not see how much you can save with a quick price comparison.
What did the Government say?
Prime Minister Theresa May said: “For far too long older people, hard-working families and those on low incomes have been subject to rip-off energy tariffs.
"Our energy price cap will protect households from unfair price rises in time for this winter when people can feel the pinch more acutely.
"We know that the cost of living is still a challenge for some families and today marks an important step in helping people to keep more money in their pockets.”
What happens now?
Once the law has been given royal assent it will be up to Ofgem to set the cap.
Once in place, the level of the price cap will be reviewed at least every six months.
The cap will remain in place until at least 2020.
What about all the energy price hikes?
Price hikes have been coming left, right and centre.
Co-operative Energy was the latest to join the bandwagon, increasing its gas and electricity prices for 128,000 households.
It marks the 25th price hike by an energy company in 2018.
EDF Energy has already announced its second bill rise this year - adding £70 to gas and electricity bills.
Are you paying too much for your energy bills?
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