Martin Lewis explains what energy price guarantee's early end means for those on fixed tariffs

Martin Lewis has explained what the government's latest energy bill announcement means for households on fixed tariffs. The Energy Price Guarantee, which was unveiled as part of Kwasi Kwarteng's mini-budget in September, ensured that a typical household's energy bill would be frozen at around £2,500 a year.

The guarantee came into force in October and was due to last for two years. But on Monday (October 17) Jeremy Hunt announced that the policy would only last until April.

The newly-appointed Chancellor said there would be a review to look at a “new approach” to target support at those worst off after April and that the new package would “cost the taxpayer significantly less”. Following the announcement, the MoneySavingExpert took to Twitter to share his 'best guess' on what the shake-up means for households on fixed energy bill tariffs.

Read more:Energy bills help to stop in April and NOT two years in major U-turn

Mr Lewis explained: "What does the energy price guarantee's early end mean for those on fixed tariffs? This is my best-guess based on what we know so far. It depends on which of three camps you're in... 1. You're on a fix below the guarantee. Nowt has changed. Your fix will remain for full term.

"2. Your fix was higher than the guarantee rate, but was reduced by up to 4p/kWh gas, 14p/kWh elec which drops you to the price guarantee rate. It's likely this reduction ends in April. Some firms moved people in this position to standard tariffs, no idea legal position on that yet.

"3. Your fix was reduced by the 4p/kWh gas, 14p/kWh elec yet that still left you higher than the guarantee rate. You can switch penalty free til Nov to you provider's price guarantee tariff. Its still likely worth doing it as, energy