London Daily

Focus on the big picture.
Saturday, Feb 21, 2026

Energy price guarantee: How bill freeze announced by Liz Truss will affect you

Energy price guarantee: How bill freeze announced by Liz Truss will affect you

An unprecedented intervention in the energy market will shield households, businesses and public sector organisations from the worst of the surge in wholesale gas prices.

The Truss government's "energy price guarantee" aims to keep the bill pain facing the public at less than half the amount predicted for the winter ahead, with firms also getting help to protect the economy - but not for as long.

Public sector organisations such as schools are included too.

While the plan shelters us all from the eye-watering sums predicted for bills ahead, there will be a price to pay eventually as the taxpayer is initially being placed on the hook for the support which could exceed the COVID-era bailout in scale.

Here, Sky News explains how you will be helped in the months ahead.

Households


Last month it was announced that the energy price cap would rise to an average annual £3,549 in October from the current £1,971.

That will now not happen.

Ms Truss says the cap will be superseded by the new price guarantee - a sum that will not exceed £2,500 from October for two years.

Helping bring that number back to the level of the current cap is the previously announced £400 discount for each household and a temporary removal of green levies, worth £150 a year, from bills.

The energy price guarantee covers the vast majority of households - around 24 million who pay for their gas and electricity by direct debit.

What this announcement does not mean is that you will not pay more for your gas and electricity. It is an average sum based on unit prices so the more you use, the more you will pay.

What the Treasury is doing is effectively covering the difference between (soaring) wholesale prices that will exceed the household bill 'guarantee' level of £2,500.

I am not currently covered by the price cap. Do I benefit?


A fraction of households are on time-limited fixed price deals.

There are 4.5 million on pre-payment meters who currently pay around 5% more than those under the price cap.

It is understood that the same comparable level of discount will apply across all current variable tariffs in the domestic market but answers are being sought from the government to clarify what that will mean for fixed rate customers.

As things stand, some may have to pay a penalty to exit their deal, assuming it is financially beneficial to do so.

Ms Truss's statement in the Commons did reveal that those who do not directly pay for their energy, such as people living in park homes, would be helped via a fund.

Properties on heating oil, the PM said, would also benefit from the new fund. More details are promised by next week at the latest.

Businesses


Firms have had no shield from rising energy prices unless they had or have a fixed deal.

The toll has led to typical five-fold increases in energy costs - worse for energy intensive companies.

Some of those additional costs have contributed markedly to inflation as they have been passed down the supply chain to consumers in the goods and services we use. Think food, attractions and transport.

What the government said on Thursday was business would benefit with energy assistance for six months, in line with the level of support for consumers.

A series of reviews, starting in December, will then determine which sectors will need targeted aid beyond April.

Ms Truss suggested hospitality would be among the sectors likely to qualify.

Public sector bodies


The same help being offered to businesses will apply to the likes of charities and schools.

Newsletter

Related Articles

0:00
0:00
Close
UK Confirms Preferential U.S. Trading Terms Will Continue After Supreme Court Tariff Ruling
U.S. and U.K. to Hold Talks on Diego Garcia as Iran Objects to Potential Military Use
UK Officials Weigh Possible Changes to Prince Andrew’s Position in Line of Succession Amid Ongoing Scrutiny
British Police Probe Epstein’s UK Airport Links and Expand High-Profile Inquiries
The Impact of U.S. Sanctions on Cuba's Humanitarian Crisis: A Tightening Noose
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
British Co-founder of ASOS falls to his death from Pattaya apartment
Early 2026 Data Suggests Tentative Recovery for UK Businesses and Households
UK Introduces Digital-First Passport Rules for Dual Citizens in Border Control Overhaul
Unable to Access Live Financial Data for January UK Surplus Report
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
UK ‘Working Closely with US’ to Assess Impact of Supreme Court Tariff Ruling
Trump Criticises UK Decision to Restrict Use of Bases in Potential Iran Strike Scenario
UK Foreign Secretary and U.S. State Chief Hold Strategic Talks as Tensions Rise Over Joint Air Base
Two teens arrested in France for alleged terror plot.
Nordic Fracture: How Criminal Scandals and Toxic Ties are Dismantling the Norwegian Crown
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
King Charles III Opens London Fashion Week as Royal Family Faces Fresh Scrutiny
Trump’s Evolving Stance on UK Chagos Islands Deal Draws Renewed Scrutiny
House Democrat Says Former UK Ambassador Unable to Testify in Congressional Epstein Inquiry
No Record of Prince Andrew Arrest in UK as Claims Circulate Online
UK Has Not Granted US Approval to Launch Iran Strikes from RAF Bases, Government Confirms
AI Pricing Pressure Mounts as Chinese Models Undercut US Rivals and Margin Risks Grow
Global Counsel, Advisory Firm Co-Founded by Lord Mandelson, Enters Administration After Client Exodus
London High Court dispute over Ricardo Salinas’s $400mn Elektra share-backed bitcoin loan
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Former Student Files Civil Claim Against UK Authorities After Rape Charges Against Peers Are Dropped
Archer Aviation Chooses Bristol for New UK Engineering Hub to Drive Electric Air Taxi Expansion
UK Sees Surge in Medical Device Testing as Government Pushes Global Competitiveness
UK Competition Watchdog Flags Concerns Over Proposed Getty Images–Shutterstock Merger
Trump Reasserts Opposition to UK Chagos Islands Proposal, Urges Stronger Strategic Alignment
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Liberal Senator Michaelia Cash Accuses Prime Minister of Lying to Australians
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
A Lunar New Year event in Taiwan briefly came to a halt after a temple official standing beside President Lai Ching‑te suddenly vomited, splashing Lai’s clothing
Jillian Michaels reveals Bill Gates’ $55 million investment in mRNA vaccines turned into over $1 billion.
Ex-Prince Andrew Mountbatten-Windsor's arrested
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Four Chagos Islanders Establish Permanent Settlement on Atoll
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
UK Inflation Slows Sharply in January, Strengthening Case for Bank of England Rate Cut
Hide the truth, fake the facts, pretend the opposite, Britain is as usual
France President Macron says Free Speech is Bull Sh!t
Viktor Orbán getting massive praise for keeping Hungary safe, rich and migrant-free!
UK Inflation Falls to Ten-Month Low, Markets Anticipate Interest Rate Cut
UK House Prices Climb 2.4% in December as Market Shows Signs of Stabilisation
BAE Systems Predicts Sustained Expansion as Defence Orders Reach Record High
×