Truss insider 'confident' energy bills will be frozen in UK
3 Min Read
Plans to freeze energy bills are in the making if Truss is elected - according to campaign insiders, which comes just hours before the prime minister election results.
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UK PM candidate Liz Truss (AP)
According to The Telegraph reports, citing sources, UK Foreign Secretary and PM runner-up Liz Truss could freeze energy bills for UK households this winter.
Truss has maintained her lead over former finance minister and fellow candidate Rishi Sunak in the polls of Conservative Party, or Tory, members. The voting closed last Friday and the final winner will be announced at 12:30 pm BST (11:30 GMT) on Monday.
The Telegraph also reported Sunday that the Scottish Power energy company proposed a £100 billion ($114.8 billion) project to freeze energy bills for a two-year span in the UK, which other British energy companies advocated for.
One energy company told the newspaper that the plan has been "extremely actively explored" by the Truss campaign, and another industry source disclosed that the proposal was being criticized by the Truss campaign, whose team insider told the newspaper: "I’m confident there will be a mechanism introduced that freezes bills".
Bloomberg reported on Saturday that approximately 60% of factories in the UK are at extreme risk of shutting down as energy costs across the country continue to skyrocket, with electricity bills surging by more than 100% over the past year. Britain may have to spend $27 billion more in subsidies if they are going to cover the surging energy bills in the upcoming heating season, according to a report by The Guardian last Wednesday, citing a research paper published by the Institute for Government (IfG) - meaning every British household would pay £900 ($1,057.45) more this winter compared to May's estimate.
Another insider told the newspaper that the idea was heavily discussed, especially concerning the details of the potential plan, such as who would benefit, its duration, and at what price level which remains a point in question.
Truss, however, said in an article for The Telegraph that she intended to address the energy bill matter in the first week of starting off her new administration if elected. "Sticking plasters and kicking the can down the road will not do. I am ready to take the tough decisions to rebuild our economy," Truss wrote.
A source close to Truss told the newspaper on Saturday that the Foreign Secretary would implement a "two-track approach," which would entail direct financial support for British citizens and ways to find solutions for the energy market problems enlarged by the impacts of the coronavirus pandemic and the Ukraine crisis.
Last week, UK energy regulator Ofgem announced an 80% increase in the energy price cap to £3,549 ($4,194) per year due to start on October 1 because of rising global energy prices and inflation, which hit its highest in 40 years. Since April 1st, the energy price cap had stood at £1,971. Ofgem CEO Jonathan Brearley warned that energy prices are likely to keep increasing, and called on the country's future PM to take new measures to tackle the problem.
