Vulnerable people will save the equivalent of up to two months of their annual energy bill, as Ofgem’s safeguard tariff comes into effect for a million more people.

The tariff will cap the energy bills of customers who are eligible for the Warm Home Discount – which includes some of the poorest families and pensioners. Analysis by Citizens Advice found that customers currently on a standard variable tariff paying £1,260 a year will see their bill reduced to just over £1,030 – the equivalent of saving more than two months worth of energy bills.

Citizens Advice is calling on the government to follow the regulator’s lead, by implementing a cap on energy prices for all consumers sooner rather than later. The charity says that by doing so, the government could provide a solution to sky-high energy costs faced by customers stuck on standard variable tariffs in time for next winter.

Gillian Guy, Chief Executive of Citizens Advice said “From today, some of the most vulnerable energy customers will save hundreds of pounds on their bills. This is a welcome step towards making the energy market work better for consumers. Citizens Advice has long called for more protection for the poorest pensioners and families paying over the odds for their energy.”

“The priority for the government must now be to introduce a price cap for the whole of the energy market sooner rather than later. We want to see energy bills capped for the 12 million people stuck on poor value default tariffs before next winter.”