HELPING HAND
Hope for millions on fixed energy deals as households may get DISCOUNT on bills
MILLIONS of households have been given fresh hope that they can get a discount on bills if they have fixed energy deals.
The new prime minister Liz Truss announced a raft of emergency measures to help buffer households against spiralling energy bills.
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She announced an energy price cap freeze which will see no household pay more than £2,500 on average for their energy bills - helping 25million customers.
The price cap limits the amount energy firms can charge - but not the amount that households will pay.
It comes in addition to the £400 energy discount for all homes.
Today, the Prime Minister also announced:
- A two year price freeze on bills, saving households £1,000
- Support for businesses for at least six months
- Households will still get the £400 rebate on bills this winter
- Millions excluded by the price cap to get support from a new fund
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However, 6.2million customers are on fixed deals which means they could be paying more than the new Energy Price Guarantee.
It is understood that the government is in talks with suppliers to provide a discount rebate on bills to those locked in to prices higher than the new price guarantee.
It's not clear how much these households will get, or how it will be dished out.
Earlier today, Martin Lewis called on the government to provide help to customers on fixed tariffs.
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Many customers decided to take out fixed deals that were higher than current price cap, in the hope that it would be lower than what it was expected to rise to over the winter months.
Bills were predicted to hit as high as £6,000 next year because of spiralling wholesale costs.
Anyone who opted for a fixed deal recently could leave penalty-free.
There's a 14-day cooling off period which means you can cancel the contract and not pay an early exit fee.
For those who fixed longer ago, it's not clear yet if they will be able to leave their contract.
Reports suggest that talks are taking place with suppliers to ditch exit penalties for those who are on fixed deals.
It means anyone on a deal higher than the new energy price guarantee of £2,500 for a typical bill could move on to it without any extra cost.
We'll update when we know more about the full details of the scheme.
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Ms Truss also announced that businesses will have a separate six-month scheme offering the same support.
It will be extended to the most vulnerable industries, including business, charities and schools.
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