Cost of living: Consumer Council urges customers to review suppliers as Government reduces EPG subsidy to zero

The consumer watchdog was speaking as the UK government is removing the last level of consumer support that it rolled out in November 2022.

The Energy Price Guarantee (EPG) Scheme was introduced in Northern Ireland to help households with high energy prices – which were in large part caused by the Russian invasion of Ukraine.

The EPG applied a discount to the unit rate of electricity and gas tariffs, which meant that energy bills have been lower than they should have been under normal market conditions for the last 10 months.

However, as the cost of wholesale energy has gradually reduced, so the government has gradually slashed the level of support it is providing.

But with world energy prices now returning to normality, the government is withdrawing all EPG support.

The support was first reduced in January and again in April, with the final cut – from tomorrow – reducing government support to zero.

Raymond Gormley, head of energy policy at The Consumer Council, said: “Nearly all energy companies will change their tariffs on July 1, so we recommend that consumers shop around to ensure they are on the most appropriate tariff to suit their needs.

“To support consumers with the switching process, the Consumer Council’s website has an independent energy price comparison tool to help them get the best deal.

“The main reason tariffs are changing is because the government EPG Scheme, which had subsidised our bills over the winter and spring, has been reduced to zero.

“This is unfortunate given prices remain around double the pre-pandemic norm. However, the scheme will remain in place until April 2024 and the government will review whether it is needed every three months until then.

“So, if energy prices increase significantly in the winter, the Consumer Council will make the argument to government that they should reinstate a subsidy.”

He urged anyone struggling to pay their energy bills or top-up their meters to contact their supplier without delay.

The watchdog also encouraged consumers to reduce their energy costs now, if possible, and budget over the summer, to help cover energy costs during the coming winter.