Following on from our article on 21st September, the UK government has released further details on its winter energy plans.
It has now been announced that for variable, deemed and all other contracts, the maximum discount, reflecting the difference between the government supported price and relevant wholesale price, will be £345/MWh for electricity and £91/MWh for gas. These rates differ significantly from the “around” figures presented in document released on the BEIS website on the 21st September 2022, which showed the maximum discount rate for electricity of £405/MWh and for gas £115/MWh. We are not expecting any changes at this point to the relief offered to those consumers on a fixed price contract.
The government has now confirmed that the green levy discount has been applied to the wholesale price cap. This means that green levies will still be charged as normal, and clients will see the benefit through the price cap, rather than as any additional discount.
If you have questions about how any of this might affect you, please contact your LGE Account Manager. LGE is closely monitoring the situation as the full details emerge.