The new Prime Minister, Liz Truss, today (Thursday) unveiled her plans to help households and businesses in light of the cost of living crisis.
It was announced at the end of last month that from October 2022 the average cost of energy would rise to £3,500 per annum for households.
£2,500 price cap
The PM has now announced a new price cap agreed with the energy companies which will see average household energy bills capped at £2,500 for two years.
The price cap in Winter 2020/21 was £1,000, so the new price cap. although lower than previously agreed, is still two and a half times that. There’ll be some comfort in knowing that it’s not as high as the £6,600 figure that was being suggested for April 2023.
Support for businesses
Also announced was support for businesses. The PM said their energy costs would also be capped at the same price per unit – or kilowatt hour (kWh) – that households will pay under the government’s new plans.
That scheme will initially last for run for six months. It will be subject to a review in three months’ time and could be extended for vulnerable businesses, such as the hospitality sector.
Other measures
It was also announced that the deployment of clean and renewable energies will be sped up and a new Energy Supply Taskforce will agree long-term contracts with suppliers that reduce the price they charge for energy.
In addition the ban on fracking will be lifted.
Article edit
4.45pm 8th Sep 2022 – Per kWh rates added and removed
