Energy price caps: what are the new tax rates for gas and electricity?

The government has revealed the new average unit prices for the electricity and gas to be paid by customers by direct debit as part of Liz Truss' plans to ease the cost of living crisis.

Intervening to control the devastating price hikes the country is facing confronted, the new Prime Minister announced on Thursday that average annual household energy bills would be capped at £2,500 for two years, starting in October.

The new 'energy price guarantee Ms Truss' government 'energy' replaces regulator Ofgem's existing price cap, under which average household energy bills were set to soar next month from £1,971 to £3,549.

The new 'guarantee' will cap the energy unit price, meaning that the actual bill paid by households will vary depending on the amount of gas and of electricity they use.

In an update Friday evening, the Department for Business, Energy and Industrial Strategy (BEIS) revealed that as of October 1, the price average unit for dual-energy customers at standard variable tariffs, paying by direct debit, will be limited to 34.p/kWh for electricity and 10.3p/kWh for gas, VAT included.

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For those who have fixed tariffs at a higher rate as a result of the increase in October price cap, unit prices will be reduced by 17p/kWh for electricity and 4.2p/kWh for gas, the dept.

Because these savings are applied to the months of Ofgem October...