British Prime Minister Liz Truss unveils a two-year plan to limit rising energy bills

British Prime Minister Liz Truss unveiled a two-year plan on Thursday to impose an annual ceiling of £ 2,500 on soaring household energy bills from 1 October to tackle the country’s cost-of-living crisis.

In her first major announcement since taking office earlier this week, the new leader said her measures would save people around £ 1,000 per year based on projected energy prices. Indeed, the energy price cap set for companies as the ceiling they can charge customers was to rise from the current level of £ 1,971 to £ 3,549 in October, an effect of the surge in global costs in the aftermath of the Russian-Ukrainian conflict. .

Now is the time to be bold. We are facing a global energy crisis and there are no free options. There will be a cost for this intervention, “Truss told the House of Commons.

As part of a three-pronged strategy, he said the government would take steps to boost domestic energy supply, boost growth and curb inflation by up to five percentage points, and up to £ 40 billion would be made available to provide wholesale energy. companies have the money to manage price volatility.

The move comes on top of the £ 400 payment to families planned by former chancellor and conservative leadership candidate Rishi Sunak earlier this year.

A six-month program for businesses, schools and hospitals will provide equivalent support during the winter, with additional targeted support for specific sectors such as hospitality that should follow later. There is currently no cap on energy costs for businesses and no specific figure on support has been provided due to differences in the way the wholesale energy market operates versus the retail market for households.

Truss said his new chancellor, Kwasi Kwarteng, will outline the costs of the energy bill plan as part of his financial statement later this month and reiterated that his government will not give in to the opposition leader who demands this. is financed by an exceptional fee.

It would harm the national interest by discouraging the very investments we need to secure local energy supplies, he said.

The opposition Labor Party argues that an account freeze should instead be paid for through an unexpected tax on the profits of oil and gas producers, something the new Prime Minister has opposed throughout his leadership campaign to be elected Party leader. conservative.

The cost of living crisis triggered by rising energy bills was the dominant issue during his eight-week run with Sunak for the top spot to replace Boris Johnson on Downing Street. In his inaugural address at 10 Downing Street, Truss indicated that his first major announcement would address this issue.

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