New UK Prime Minister Liz Truss announced on Thursday a new energy price guarantee that freezes average energy bills at 2,500 pounds ($2,870) for the next two years
MOSCOW (Pakistan Point News / Sputnik - 08th September, 2022) New UK Prime Minister Liz Truss announced on Thursday a new energy price guarantee that freezes average energy bills at 2,500 Pounds ($2,870) for the next two years.
"This government is moving immediately to introduce a new energy price guarantee that will give people certainty on energy bills. This guarantee ... means that from October 1, a typical household will pay no more than 2,500 (pounds) per year for each of the next two years while we get the energy market back on track," Truss said in the parliament.
This measure will curb inflation and boost growth, and help every household save up to 1,000 pounds per year, she said, adding that "it comes in addition to 400 pounds energy bills support scheme."
Earlier this week, UK media reported that the population support initiative of the new prime minister could cost the country about 130 billion pounds in 18 months. In August, the UK energy regulator Ofgem announced an 80% increase in the energy price cap to 3,549 pounds per year starting October 1 due to rising global energy prices. Since its last revision in April, the energy price cap has stood at 1,971 pounds. Ofgem chief executive Jonathan Brearley warned that energy prices are likely to continue to rise, and called on the country's new prime minister to take new measures to tackle the problem. Truss has not yet went onto details on exactly how this assistance program will be funded.
Earlier in the year, the government introduced the Energy Bills Support Scheme or 400 pounds scheme, which will provide UK's households with a non-repayable discount of 400 pounds on energy bills for a period of six months, starting October this year. According to the scheme, a discount of 66 pounds will be applied to energy bills in October and November, increasing to 67 pounds in December through March 2023, making it 400 pounds ($456 Dollars) in total over six months.
