LIZ TRUSS today announced an "extraordinary measures" plan to keep the annual typical household energy bill at no more than £2,500 for two years.
The limit will be introduced from October when the energy price cap was due to soar from £1,971 to £3,549. It will save the average household £1,000 a year, according to the Government. Together with a £400 discount previously announced by former chancellor Rishi Sunak, it means millions of households will be paying around £2,100 a year.
Amid widespread fears that many people would not be able to pay their bills this winter, Ms Truss said: "I'm acting immediately so people and businesses are supported over the next two years, with a new Energy Price Guarantee, and tackling the root cause of the issues by boosting domestic energy supply.
"Extraordinary challenges call for extraordinary measures, ensuring that the United Kingdom is never in this situation again." The Energy Price Guarantee, which supersedes the Ofgem energy price cap, will limit the price that suppliers can charge customers for units of gas.
The overall cost for support for households and businesses could soar to more than £100 billion, which will be funded by borrowing. Businesses and other non-domestic energy users, such as schools and hospitals, will be offered "equivalent" support, under a six-month scheme, as households are getting.
This story is from the September 08, 2022 edition of Evening Standard.
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This story is from the September 08, 2022 edition of Evening Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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