UK energy suppliers expect government support for high energy costs to be maintained at or near the current level, according to reports.
Under the current energy price guarantee, typical household energy bills are capped at £2,500. This is scheduled to be scaled back from April, increasing annual energy bills to around £3,000.
The UK government has not yet indicated that the support scheme will be extended at the current rate. A decision is expected to be announced as part of the Budget on 15 March.
Sky News said it understands that the government has asked suppliers to prepare for two scenarios: the current effective cap of £2,500 to continue, and for the scheduled reduction in support next month, taking bills to £3,000.
There is widespread expectation in industry and Whitehall that the existing support will be maintained when Chancellor Jeremy Hunt delivers the Budget.
The Resolution Foundation think tank, which focuses on improving living standards for people on low to middle incomes, and consumer rights journalist Martin Lewis have also said that Hunt is likely to keep bills at the lower level, BBC News reports.
“I would say that we’re at an 85% likelihood that the price won’t be going up,” Lewis told the BBC’s Today programme.
The Institute for Fiscal Studies (IFS) has said that the Treasury could afford to keep support at the current level until the summer due to a drop in wholesale energy prices which means the cost of the scheme is now less than forecast.
