• Ar
  • Es
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Feature
  • Videos
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Feature
Videos
Infographs
In Pictures
  1. Home
  2. News
  3. Europe
  4. Truss freezes energy bills for 2 years, costs government £150 billion
Europe

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

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

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.

  • 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.

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

Trending Now

All
A consumer shopping at a supermarket in the UK (The Mirror)

Tesco locks chilled meats fridge to prevent shoplifting during crisis

Most Read

Chief of Russian Radiation, Chemical and Biological Protection Force Igor Kirillov (TASS)

20,000 docs obtained by Russia expose US biowarfare program in Ukraine

  • Europe
  • 30 Jan
Neo-compradors: the leftist foot soldiers of Imperialism

Neo-compradors: the leftist foot soldiers of Imperialism

  • MENA
  • 2 Feb
The Utter Disconnect between 'Realities'

The Utter Disconnect between 'Realities'

  • Analysis
  • 30 Jan
'Israel's' attack on Bukamal targeted food, medicine convoy (Footage)

Israeli attack on Al-Bukamal targeted food, medicine convoy (Footage)

  • MENA
  • 30 Jan

Read this

All
A train crosses the Russian-Chinese border in Manzhouli, China (Getty Images)
Asia

Cargo traffic via Russia-China border hits record high in January

  • Today
A large balloon drifts above the Kingstown, North Carolina area, with an airplane and its contrail seen below it (AP Photo)
US & Canada

US fighter jet shoots down Chinese balloon off SC coast

  • 4 Feb
IOF raids Ariha, Ezzeddine Qassam Brigades respond
Palestine

IOF raids Ariha, Ezzeddine Qassam Brigades respond

  • 4 Feb
An aerial picture of the gas leak in the Baltic Sea, taken from an F-16 fighter jet belonging to the Danish Armed Forces (Danish Defense Ministry)
Europe

Germany cannot prove Russia sabotaged Nord Stream pipelines - reports

  • 4 Feb
Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • About Us
  • Contact Us
  • Authors
Android
iOS