Energy firms will contact customers over bill cuts

Energy firms have said they will contact customers over what government plans to cut bills mean for them.

New Prime Minister Liz Truss announced typical annual household bills would be capped at £2,500 for two years.

Energy suppliers have told the BBC they are working through the detail and will contact customers before 1 October.

It is understood energy firms are being asked to discount current fixed deals or allow a transfer to the cheaper variable deal without a penalty.

Anyone who fixed their energy price within the last 14 days can cancel without charge.

Before Thursday's announcement, typical household bills had been due to rise from £1,971 to £3,549 a year.

The government has said it will compensate energy firms for the difference between the wholesale price for gas and electricity they pay and the amount they can charge customers.

Scottish Power said it was "working through the detail of this change" and would write to affected customers.

"We'll share updates on our website as soon as we know more, so there's no need to contact us right now," it added.

E.On said customers did not need to do anything as it would implement the government scheme across its tariffs.

Customers on a fixed tariff will not need to change their contract, it said.

Greg Jackson, chief executive and founder of Octopus Energy, said firms were still working through the details and customers should "sit tight and wait to hear from their energy supplier".

"Nothing will change until 1 October and we'll be in touch with everyone before then," he added.