UK household energy bills will remain supported by the government for another three months, according to media reports.
Chancellor Jeremy Hunt is poised to unveil an extension to the £2,500 energy price guarantee in the Budget later this month, the Times reported.
The energy price guarantee governs the amount consumers pay in their gas and electricity bills.
Citing a Whitehall source, the report suggested extending the scheme will act as a 'bridge' until wholesale prices fall below energy price cap in July.
EXCLUSIVE:
Jeremy Hunt poised to extend £2,500 energy price guarantee for another three months
Whitehall source says it will act as a 'bridge' until wholesale prices fall below energy price cap in July
Cost estimated at £3bn but could be lesshttps://t.co/QiDxkCBrOU
— Steven Swinford (@Steven_Swinford) March 3, 2023
Earlier this week, energy regulator Ofgem said its new energy price cap will be cut 23% from April, with suppliers able to charge the 'average household' up to £3,280 from April 1, a drop from the current £4,297 cap.
Meanwhile, energy suppliers such as British Gas and Octopus have been contacted by government officials with two sets of rates for units of gas and electricity, the Guardian reported, depending on whether or not the chancellor decides to extend the support.
One chief executive of an energy supplier told the paper that they had been "everything is leaning toward" support being extended.
The cost of the energy price guarantee is estimated at around £3bn, the report said, which would allow room for further rabbits to be pulled out of the Budget hat following the surprise £5.4bn surplus in January’s public spending figures.