It is based on the price energy suppliers pay producers for electricity and gas.Many families are already facing soaring costs, with UK inflation - the rate at which prices are rising -Last week, personal finance expert Martin Lewis said people would be "panicking" over their energy bills, and"It's going to throw many households into a terribly difficult financial situation," he told the BBC.
Households will see a discount of £66 applied to their energy bills in October and November, and £67 a month from December to March 2023.
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