Family power prices might be capped in Northern Eire from November.
A cap is making use of in the remainder of the UK from October, however the Authorities stated customers right here will see the identical profit by backdating assist.
However what does this all imply? We break down among the most typical questions requested about right now’s announcement.
What has been introduced?
This morning the UK Authorities introduced plans to cap family and enterprise payments in Northern Eire to assist with the rising price of dwelling.
Vitality payments, which have soared in latest months, will now be capped right here for six months from November and might be backdated from October.
There will even be a separate assist measure for companies, which will even embody voluntary sector organisations reminiscent of charities, public sector organisations reminiscent of faculties, hospitals and care houses.
How a lot will households save?
The UK Authorities have stated a typical family in Nice Britain can pay on common £2,500 a yr on their power invoice for the subsequent two years from October 1.
It’s anticipated the identical measures will apply for Northern Eire when assist kicks in right here in November.
It comes after Prime Minister Liz Truss introduced her plan to introduce a value cap throughout Prime Minister’s Questions on September 8.
The Authorities says this may assist the common family to the tune of a minimum of £1,000 a yr based mostly on present power costs from October.
That is in addition to the £400 power payments low cost for all households.
This low cost was introduced to launch in the remainder of the UK in October and, just like the added measures introduced right now, that is additionally anticipated to be out there in Northern Eire in November.
Do I've to use for the assist?
No, the Authorities has stated prospects don't have take any motion to profit from the assist. As a substitute the measures might be utilized to power suppliers.
How a lot will companies save?
Payments for companies have rocketed not too long ago, with many having to shut due to the rising prices. The announcement right now pertains to ‘wholesale’ power costs.
The Authorities say these costs might be capped at “lower than half” of the anticipated winter ranges.
The Vitality Invoice Aid Scheme will imply that these beneath the British assist on fixed-term contracts, agreed on or after April 1, will see their wholesale costs for electrical energy capped at £211 per megawatt hour (MWh) and £75 per MWh for gasoline.
A comparable wholesale fee might be “set shortly” for Northern Eire.
Why are power prices being capped?
Vitality payments and prices for households and companies have soared in latest months, with some companies in Northern Eire saying they aren't paying virtually 30% of their annual charges in a single month.
Russia’s invasion of Ukraine in February drove up the price of gasoline and there was a 600% improve in wholesale gasoline between summer season 2021 and this yr.
What about oil costs?
Nearly all of households in Northern Eire use oil as their foremost heating provide.
The bulletins right now apply to power payments, inside which oil isn't included.
There isn't a related scheme anticipated to be launched regarding assist for oil costs however an extra fee of £100 might be given to households throughout the UK who should not in a position to obtain assist for his or her heating prices by way of the Vitality Value Assure.
This is supplied as a result of some customers might dwell in an space of the UK that isn't served by the gasoline grid and is to assist compensate for the rising price in oil.
Why is Northern Eire’s assist starting a month later?
Northern Eire has a separate power system and is in a unique power market compared to the remainder of the UK.
This implies GB insurance policies don't apply as NI has its personal guidelines and regulator.