Energy bills: What does Liz Truss’s energy plan mean for household finances? | Personal Finance | Finance

However, Money Saving Expert and financial journalist Martin Lewis took to Twitter today to provide an update on what exactly this cap means to these households.

He tweeted: “All fixes that are more expensive than the new price guarantee rate will see an automatic reduction in Oct (but they will at most only reduce to the level of the new guarantee)

“So for now DO NOTHING…

“In the energy summit I had today BG, Shell, Eon, EDF, Ovo (SSE), Octopus CEOs agreed to my ask that the few (maybe one percent) whose fixes still cost over the price guarantee after that, CAN move onto the guarantee with no exit penalties, til at least November 15 (some beyond)”

However, he disclosed firms don’t have the full information from the Government yet so advised his followers not to “waste time calling them now” – especially as, he stated: “Ninety-nine percent of fixers needn’t do anything anyway”.

What do the new plans mean for businesses?

Ms Haine said: “The new assurances for businesses that energy costs will be capped at the same price per unit as households for six months will hopefully ensure companies can continue to operate throughout the window and aren’t forced to shut up shop – a move that protects jobs and livelihoods.

“However, what happens after the end of the six months is unclear, as only ‘vulnerable sectors’ are likely to benefit from then.”

What do the new plans mean for those with oil-fired heating systems?

The plans also offer some security for the one million UK homes with an oil-fired heating system that previously received no protection against rising prices.

Ms Haine said: “Average home heating oil is currently around 98.67 pence per litre, as of September 7, which is much lower than the almost 170 pence rate seen in March.