Prime Minister Liz Truss announces two-year freeze on energy prices
8 September 2022, 13:45
Liz Truss announces freeze for energy bills at £2,500
Prime Minister Liz Truss said 'this is the moment to be bold' as she unveiled her plans to deal with the energy crisis.
Prime Minister Liz Truss has announced a two-year freeze on energy prices.
The new PM was in the House of Commons today where she revealed her plans to deal with the current energy crisis.
Announcing the details, Truss said: "From the 1st October, a typical household will pay no more than £2,500 per year for each of the next two years while we get the energy market back on track.
She went on: "This will save a typical household £1,00 a year. It comes in addition to the £400 energy bill support scheme. We are supporting this country through this winter and the next."
This announcement comes after it was confirmed earlier in the year that from October, a typical household's gas and electricity bill will rise from £1,971 to £3,549.
The PM said that the Government are also working to reduce the cost of energy in the future.
She revealed that a new Energy Supply Taskforce will negotiate with suppliers to agree long-term contracts, that will in turn reduce the price they charge for energy.
They will also be negotiating with renewable produces to reduce the prices they charge.
Truss added that she will not be giving into the leader of the opposition's request to bring in a windfall tax.
She said that Kier Starmer's demand would "undermine the national interest" by discouraging the investment the country needs for home grown energy supplies.
There will also be support provided to businesses that are suffering from the rise in energy bills.
A new six-month scheme has been put in place to offer the same support to businesses that is being offered to consumers.
Following this six month period, the Government will be offering "focused support" to the most vulnerable industries.
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