Fixed energy bills to get automatic discount

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Fixed energy bills to get automatic discount

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Fixed energy bills to get automatic discount


Customers on fixed energy deals will see their tariffs automatically cut, the Department for Business has said.

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New Prime Minister Liz Truss announced typical annual household bills would be capped at £2,500 for two years.

People "do not need to take any action to get the benefits of this scheme," a spokesperson for the Department for Business told the BBC.

Energy firms have said they will contact customers over what government plans to cap bills mean for them.

Meanwhile, Downing Street has said it does not believe the mourning period for the Queen's death will affect the rollout of the new policy.

The prime minister's official spokesman said: "The public should be reassured that the energy price guarantee will be in place for households from 1 October, as planned."

Before Thursday's announcement, typical household bills had been due to rise from £1,971 to £3,549 a year.

Scottish Power said it would be in touch with customers between now and 19 September with details of what the new prices will be.

The company's chief executive, Keith Anderson, told the BBC that the government's energy plan was a "massive step forward" as it gave customers certainty over how much they will pay for energy over the winter.

"What this does is it buys us time," he said. "It's now about how we use that time and what we do in the next 18 months and two years."
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