Arshalouis Wuest

The Treasury has subsidised gas and electricity bills for every household through the energy price guarantee (EPG) since October. On Wednesday morning the Treasury revealed that support would continue at its current level for another three months. So what might that decision mean for you?

That’s right. Hunt’s widely anticipated U-turn means typical bills will not increase by 20% next month, as had originally been planned. The EPG limits average annual costs to £2,500 but it was due to become less generous.

Under the original plan, that £2,500 ceiling was going to be upped to £3,000 a year from 1 April. But the chancellor has confirmed it will now stay at £2,500 a year until the end of June.

Charities, campaigners and others had urged the government not to reduce the help given to households with paying their energy bills, arguing it would push more Britons into poverty. There had been claims that, without intervention, the number of fuel-poor households would increase from 6.7 million to 8.4 million from April.

Campaigners had demanded that the £2,500 ceiling on the average dual bill be kept in place until the end of June, by which time sharp falls in wholesale gas prices are expected to have fed through the system and should benefit consumers.

Ofgem operates an energy price cap that sets market prices but the EPG keeps bills lower by paying suppliers the difference between that level and the £2,500 ceiling.

Analysts have predicted that the Ofgem cap will fall to just above £2,100 a year from 1 July until the end of this year. It’s a lot higher than that now: £4,279 a year for the period from 1 January to 31 March, and £3,280 a year for 1 April to 30 June.

Assuming that wholesale prices do not rise sharply again, the EPG would in effect become irrelevant from 1 July, and consumers would go back to paying the lower Ofgem price cap.

MoneySavingExpert’s Martin Lewis had argued there was no point allowing prices to rise for three months only for them to fall again in July, and that it would be far better to just extend the guarantee. Otherwise, he said, people would be unnecessarily subjected to “the financial and mental health damage” of a 20% rise for three months.

Not necessarily – officials say the average household in Great Britain will pay about £2,500 a year on their energy bill until the end of June. However, this is based on a home with “typical” consumption on a dual electricity and gas bill paying by direct debit.

The actual amount someone pays will depend on things such as how much energy they use, where they live and how they pay for energy. So total bills will still rise or fall in line with their energy use.

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The absolute value of numbers and expressions can be found by searching.

Represent absolute values with number statements.

-10 is not the same as 10 because of sign. 3 + 7 gives us a different result.

There are circumstances in which the sign does not matter. Have you ever tripped on an escalator? It doesn't matter if you're moving faster or slower than the ground, it's the difference in magnitude that makes you lose balance.

If you go north or south, your feet will hurt no matter where you go. The distance is what matters, not the direction.

There is a concept for dealing with situations where size is more important than sign. It is called absolute value.

The absolute value of a number is not dependent on the sign.

The absolute value can be explored graphically.

The absolute value is indicated by enclosing the number, variable, or expression within a vertical bar.

20.

x

4n9

The absolute value of a number is always positive or negative. The absolute value is the same if the original value is positive. If the original value is not positive, we get rid of the sign. The absolute value of 5 is 5.

The absolute value of -5 is 5.

In absolute value situations, we are not changing the position or direction of a number, we are just ignoring the details.

Don't confuse the absolute value bars with the parentheses or brackets. The rules that evaluate them are different than the symbols.

For example, -1(-3) is 3. The parentheses have negative signs inside and outside.

But -3. You can't find the absolute value of the number between the bars because you can't multiply across them. The operation becomes -1(+3) if the absolute value of -3 is 3.

The expression must be evaluated before the absolute value can be found. Consider the expression.

We need to subtract the expression before we can get the absolute value. When we do that, 6 4 becomes 2 The absolute value of the expression is 2, so we can calculate it.

6 4 2.

The operations must be performed inside the absolute value bars.

1521 is 6.

The absolute value of a number is the distance between the value and zero. When we use the number line to explore absolute value, it will always be to the right of zero. The absolute value will be above the original if it is positive or negative.

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