Last week we mentioned the new energy bill solution issued by the new Prime Minister.

The average household’s energy bill will be capped at £2,500 (subject to circumstances) for two years from October this year.

What does the Prime Minister’s new energy plan mean to you? We are here today to answer the questions for you.

How Much Households Will Pay for Their Energy Bills?

For an average household, it could triple from last year without government intervention.

However, under the new energy price guarantee, traditional houses will save more than apartments.

A guidance issued by the government mentioned:

  • From 1 October, the typical detached house will pay £3,300 a year for gas and electricity – a saving of £1,400.
  • A semi-detached house will pay an average of £2,650 a year.
  • Homes with terraces face bills of £2,450 a year on average
  • Medium-sized terraced properties average £2,350 and bungalows £2,450.
  • The average annual energy bill for a retrofitted apartment is £1,950
  • Purpose built apartments are around £1,750.
energy bills

Energy Bills for Prepaid Meter Customers


For prepaid meter customers, the Energy Price Guarantee will apply to the rate you pay per unit of energy, so the money you put on the meter will last longer this winter.

As with the “price cap” under the Energy Price Guarantee, there will continue to be small differences between the unit cost of prepaid meter customers and other bill payers.

Need to Pay the Difference in Energy Bills?

It will save households who would otherwise have to pay hefty bills as the government will freeze energy bills for two years.

Does this difference need to be repaid later?

Overall, the government is borrowing to pay that bill and adding to the national debt.

The difference doesn’t appear directly on your bill or tax.

Additional Notes on Energy Bills


There is no need to apply for or contact an energy provider for the new energy plan, be wary of any potential scams.

This energy plan does not apply to Northern Ireland due to the different energy systems in Northern Ireland. The government said it would reach an agreement and legislate shortly.

Energy bill support for businesses differs from households, with bill protection for six months and a focus on vulnerable industries.