Who is eligible for Jeremy Hunt's extended energy bill coverage?

Sign up for View email from Westminster for expert analytics straight to your inboxReceive our free email View from WestminsterPlease enter a valid email addressPlease enter a valid email addressI would like to receive emails about offers, events and updates day of The Independent. Read our privacy notice Please try again later{{ /verifyErrors }}

The Power Price Guarantee has been extended by three months, confirmed Jeremy Hunt in his spring budget.

The average annual household bill will continue to be capped at £2,500 from April to June.

The cap was first introduced by then Prime Minister Liz Truss in September, in response to soaring gas and electricity prices.

Announcing the extension of support on Wednesday, Prime Minister Rishi Sunak said the move was part of the government's plan to helping families get through the current cost of living crisis.

"We know people are worried about their bills going up in April, so to give people peace of mind , we are keeping the power price guarantee at its current level until the summer when gas prices are expected to drop,” Mr. Sunak said. /p>

Chancellor Jeremy Hunt is due to deliver the full Spring Budget speech in the UK at 12.30pm today

( REUTERS)

What is the guaranteed price cap?

The energy price cap was introduced in January 2019 and is set by regulator Ofgem to determine how much energy suppliers can charge to customers on their standard variable tariffs.

Now set quarterly, Ofgem dictates the price households pay for each unit of gas and electricity they use, based on wholesale prices . It also includes tax allowances, fees paid to energy networks, green levies and social payments.

The ceiling is indicated in the form of the average annual household bill.

In September last year, Ms Truss announced that the typical British household would pay no more than £2,500 a year for energy for the next two years from October 1, as the government reacted to gas flare...