Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Araghchi to Grossi: These parties will bear responsibility for the consequences of their actions
Araghchi to Grossi: Iran will respond to any unlawful action by European countries or parties attempting to turn the Agency into a tool for achieving their objectives
Araghchi to Grossi: We urge the Agency to warn against the consequences of any political move against Iran
Araghchi to Grossi: We call on the Agency to highlight Iran’s full cooperation during the upcoming Board of Governors meeting next week
Araghchi to Grossi: We demand that the Agency reflect the facts in a manner that prevents certain parties from exploiting it to advance their political agendas
Iranian Foreign Minister Abbas Araghchi holds a phone call with IAEA Director General Rafael Grossi
Trump envoy Witkoff has sent 'detailed and acceptable proposal' to Iran for nuclear deal; it's in their best interest to accept it: White House Press Secretary Leavitt
Hamas official says Witkoff's position toward group was 'unfair' and shows 'complete bias' to 'Israel'
Hamas official says it has considered Witkoff's proposal acceptable for negotiations, says 'Israel's' response was incompatible with what the group agreed on
Hamas official says group has not rejected Wikoff's proposal for Gaza ceasefire

Truss freezes energy bills for 2 years, costs government £150 billion

  • By Al Mayadeen English
  • Source: Agencies
  • 8 Sep 2022 15:38
  • 2 Shares
3 Min Read

UK Prime Minister Liz Truss announces an energy bill cap at £2,500 per year for households over a period of two years, costing the Bank of England an approximation of £150 billion pounds.

  • x
  • UK PM Liz Truss
    UK PM Liz Truss ( Shutterstock)

Newly-elected UK PM Liz Truss unveiled Thursday a substantial stimulus program to assist Britons with rising energy costs and draw investment to the energy industry.

Truss announced a “new energy price guarantee that will give people certainty on energy bills.”

In her first significant action as prime minister, Truss declared that the typical household "will pay no more than £2,500 ($2,880) per year for each of the next two years," giving them "a £1,000 saving per year."

The cap will take effect on October 1st.

For the next six months, firms will receive a similar guarantee. The prime minister announced that vulnerable industries like hospitality will then get further help.

According to CNBC, Finance Minister Kwasi Kwarteng will outline the total cost of the package later this month.

Related News

CNBC unveils strategic plan to revitalize Syria energy sector with US

Syria to sign deal to import electricity from Turkey, minister says

Truss' plan to cap energy bills at £2,500 ($2,880) for two years might cost up to £150 billion ($172 billion).

Truss, in an address to parliament, that "We are supporting this country through this winter and next, and tackling the root causes of high prices so we are never in the same position again," noting that "This is the moment to be bold, we are facing a global energy crisis, and there are no cost-free options."

Truss did not place a price on the deal since wholesale gas prices remain very variable. According to Deutsche Bank, the energy price offset plus tax cuts she has already pledged might cost £179 billion, or in other words, over half the amount Britain spent on the COVID-19 pandemic.

The scope of the proposal, which is being funded by government borrowing, has unsettled financial markets. 

Separately, Truss stated that the Treasury would launch a £40 billion ($46,11 billion) joint initiative with the Bank of England to address the significant liquidity needs of energy corporations.

Her decision represented a significant shift from a leader who had ruled out "handouts" during her candidacy to become PM but is now compelled to act to prevent families from slipping into poverty and companies from going bankrupt.

Along with legislative support, Truss announced more than 100 additional exploration licenses for oil and gas in the North Sea, as well as the lifting of a fracking moratorium for towns willing to go along with it.

Read more: 27% of Britons believe Truss will be worse than Johnson - Poll

  • Energy crisis
  • Liz Truss
  • Climate crisis
  • Fossil Fuels
  • UK inflation
  • UK
  • UK economy

Most Read

US judges quietly consider private security amid Trump tensions

US judges quietly consider private security amid Trump pressures

  • US & Canada
  • 25 May 2025
President Donald Trump and Israeli Prime Minister Benjamin Netanyahu arrive to a news conference in the East Room of the White House, Tuesday, Feb. 4, 2025, in Washington (AP)

Rift widens: Trump, Netanyahu clash in heated phone call over Iran

  • Politics
  • 26 May 2025
An Israeli army vehicle moves in the Gaza Strip as seen from southern occupied Palestine, Thursday, May 29, 2025 (AP)

Hamas rejects Witkoff ceasefire plan, says alters terms

  • Politics
  • 29 May 2025
Spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, announces a new operation against Ben Gurion Airport on May 29, 2025 (Yemeni Military Media)

Yemen announces successful hypersonic missile strike on Ben Gurion

  • Politics
  • 30 May 2025

Coverage

All
War on Gaza

Read Next

All
MIT bans class president who gave pro-Palestine speech
US & Canada

MIT bans class president over pro-Palestine speech

Arab ministers condemn Israel 'ban' on planned West Bank visit
Politics

Arab ministers condemn Israeli ban on planned West Bank visit

Major General Hu Gangfeng, Vice President, National Defense University, People's Liberation Army, China, leaves after a panel discussion during the 22nd Shangri-La Dialogue summit in Singapore, Saturday, May 31, 2025. (AP Photo/Anupam Nath)
Politics

China blasts Hegseth, calls US top 'troublemaker' in Asia-Pacific

US activists demand shutdown of Musk's 'dirty' supercomputer: Reports
Technology

US activists demand shutdown of Musk's 'dirty' supercomputer: NBC News

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS