Energy Secretary Grant Shapps 'sympathetic' to ditching energy bill rise
Without the government's Energy Price Guarantee, a typical household gas and electricity bill would have hit £4,279 a year from January under the energy price cap which is set by Ofgem, the industry regulator.The price cap will fall to £3,280 a year from April, according to Ofgem, and most analysts expect it to go below £2,500 from July, at which point the government would no longer need to subsidise households.
However, the IFS think tank believes the Treasury could afford the estimated £2.7bn cost as government borrowing has been lower than expected this year.IFS director Paul Johnson said it would be a "very straightforward thing for them to do" and politically beneficial. And Torsten Bell of the Resolution Foundation think tank - which is focused on people on low and middle incomes - estimated there was only a 10% chance the Energy Price Guarantee would be changed in April.Energy suppliers must notify their customers of price increases at least a month in advance of the rise.
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