Energy bills rise as price guarantee comes into effect 

The energy price guarantee comes into effect from Saturday.

Energy bills rise as price guarantee comes into effect  iStock

Households across the UK are set to see a rise in their gas and electricity bills from Saturday as the energy price guarantee comes into effect.

Average annual bills had been expected to soar to as much as £3,549 a year on average from October 1.

However, under the UK Government’s energy price guarantee, an average household will now pay up to an average of £2,500 a year for the next two years.

Despite the action taken by Prime Minister Liz Truss, it is still up from the previous average of £1,971 and will be almost double the cost of last year.

However, Truss has faced calls to correct her claim that “no household” will have to pay more than £2,500.

The policy limits the amount that consumers can be charged per unit of gas or electricity, but some people will still pay more than £2,500 on average a year.

Households will also see the first instalment of the £400 energy bill support scheme in their October electricity bill.

The discount will be automatically applied monthly in six instalments between October and March 2023.

Businesses, charities and public sector organisations will also be protected over the next six months.

A UK-wide study found that a greater proportion of households in Scotland are struggling with the cost of living crisis than those in England.

In a survey of households across the UK, 21% (540,000) of Scottish households were in “serious financial difficulty”.

It is lower than the 15% of English households who took part in the survey.

On Friday, Truss and chancellor Kwasi Kwarteng met with officials from the Office for Budget Responsibility (OBR) to discuss the tax plans set out in the Government’s mini-budget.

The meeting was held after a week of turmoil as the pound plunged following Kwarteng’s statement in the House of Commons.

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