Government Unveils New Energy Support Measures to Cut Household Bills

The government has announced a new set of measures designed to assist families in reducing their energy expenses and accessing more affordable deals. This development follows a recent statement from energy regulator Ofgem, which revealed a 12.3% decrease in the energy price cap scheduled for April.

Claire Coutinho, the Energy Security Secretary, has expressed her approval of the price reduction and has outlined a series of initiatives that the government will implement to further decrease energy costs. These measures include a comprehensive review of standard energy deals to ensure the passing on of the lowest electricity costs, as well as a £10 million fund for companies to trial new technologies and tariffs with their customers, to optimize the use of low-carbon power.

Additionally, a new scheme is being introduced to assist customers with the repair or replacement of smart meter in-home displays after the one-year warranty period. Notably, eight suppliers have already committed to the scheme, covering 60% of the market.

The government’s objective is to enhance support for customers to maximize savings offered by smart meters, particularly as the price cap falls and competitive deals make a return to the market. This is particularly advantageous for families, including the elderly and vulnerable individuals, to effectively monitor their energy usage.

Furthermore, the government is also seeking feedback on standard energy tariffs, which consumers are transferred onto upon the expiration of fixed-term contracts, often resulting in higher costs. The aim is to make these tariffs more flexible, allowing households to pay less by using electricity during off-peak hours, while ensuring that those unsuited to flexible tariffs are safeguarded.

Amanda Solloway, the Minister for Energy Affordability and Skills, emphasized the significance of these measures in light of the upcoming decrease in energy bills. She stressed the need for more families to benefit from the substantial savings offered by smart, flexible energy deals. Solloway highlighted that the new initiatives will enable households, even those on standard basic tariffs, to access these savings, ensuring that even the busiest families do not miss out on cheaper energy bills.

In conclusion, the launch of these new energy support measures by the government demonstrates a proactive approach to addressing the increasing concern of high energy costs. With the forthcoming reduction in the energy price cap, the additional measures are aimed at further alleviating the burden on households and providing them with access to more cost-effective energy options.