The EPG ensures that the average annual household energy bill is limited, but the increase from £2,500 to £3,000 from next month means energy bills will increase by an average of 20 percent. The scheme was introduced last October and means no one pays the rate set by Ofgem at present.
A fall in the wholesale price of energy means that Ofgem has been able to reduce the price cap from £4,279 to £3,280. Forecasts for July and October suggest this could fall below £3,000.
Ofgem’s chief executive, Jonathan Brearley, said: “Although wholesale prices have fallen, the price cap has not yet fallen below the planned level of the energy price guarantee. This means that on current policy, bills will rise again in April. I know that for many households this news will be deeply concerning.”
Dr Craig Lowrey, the principal consultant at Cornwall Insight, said: “Regrettably the forecast for April looks set to leave the price cap above the increased energy price guarantee level. While tumbling cap projections are a positive, unfortunately, already stretched households will be seeing little benefit before July.”
READ MORE: Full list of energy bill support schemes
In a poll that ran from 3pm on Tuesday, February 28, to 3pm on Thursday, March 2, Express.co.uk asked readers: “Should Government cancel April’s EPG hike as Ofgem price cap falls?”
Overall, 2,818 people responded with the overwhelming majority, 94 percent (2,644 people) answering “yes” in support of the EPG hike being cancelled.
In contrast, six percent (161 people) said “no” it should go ahead, while 13 people said they did not know.
Dozens of comments were left below the accompanying article as readers shared their thoughts on the EPG.
However, some readers thought that Mr Hunt should cancel the scheme entirely at the Spring Budget on March 15. Username The mug who works!! commented: “Cancel the handouts.”
Meanwhile, other readers thought that the Government should stay out of energy pricing, with username The Almighty writing: “The Government can’t keep subsidising the country.”
Likewise, username Petercressall said: “The Government has no business interfering in the price of energy.”
Username Garibaldi said: “People need to realise what the real cost of using fossil fuels is.”
