However standard variable tariffs, which are subject to the price cap, will now remain the cheaper option after Ms Truss’s intervention. Those who switched to a fixed-rate deal and who now want to will have exit penalties waived according to Money Saving Expert Martin Lewis, who had called for energy providers to waive exit fees.
People who live in older, larger houses
It is important to note that the £2,500 figure being cited by Ms Truss is an estimate for the annual energy bill for the average household – and not a cap on how much consumers will pay for their energy in a year.
Given the price cap is calculated based on the energy usage of a family of 2.4 people, houses with three occupants or more will see bills higher than £2,500.
According to calculations by Interactive Investor, under the existing energy price cap, set at £1,971 per year on average, the typical larger household (of four or five people) is paying £765 more than the typical household (£2,736 vs £1,971), or £64 a month, and £1,371 more than small households (£2,736 vs £1,365), or £114 a month.
Ms Truss has yet to announce the proposed unit rates and standing charges that would bring the average household energy bill to £2,500, meaning it is unclear as of yet how much more a household of three or more people would expect to pay.