New Ofgem rules mean more vulnerable people will have their energy bills capped
Ofgem’s new safeguard tariff came into effect for a million more people at the start of February, meaning that the bills of certain energy users will be capped. Those eligible include the poorest families, and pensioners, anyone who is eligible for their Warm Home Discount.
Analysis by Citizens Advice found that customers currently on a standard variable tariff paying £1,260 a year will see their bill reduced to just over £1,030 – the equivalent of saving more than two months’ worth of energy bills.
This comes in as a stop-gap measure to protect the most vulnerable, before the Government’s energy price cap plan is discussed, to come into effect next winter.
The Warm Home Discount scheme protects those at risk of fuel poverty, either by giving them rebates on their energy bills, or but offering support through third parties to reduce fuel poverty.
For more information about the Warm Home Discount Scheme, see the Ofgem information page about it.
For full information about the Safeguard tariff, see the Ofgem press statement from December announcing the changes.