When Liz Truss ushered in the Energy Price Guarantee (EPG) last September, her government insisted that a universal subsidy scheme was necessary to make sure no one fell through the cracks this winter. But there was an internal argument for the scheme too: put a big down payment on energy bills now, No. 10 thought, and that will give cover to implement her tax-cutting agenda.
The latter, as we know, didn’t pan out. And now Truss’s biggest policy from her time as prime minister – one that ushered in price controls, as ministers determined what household would pay for the unit price of energy – might be at the start of its end. This morning, Ofgem announced that the latest energy price cap update – that will run from 1 April to 30 June – will be set at £3,280, a reduction of almost £1,000, down from £4,279.
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