Wednesday 7 September 2022 11:47 PM What is Liz Truss's energy rescue plan, and how much will it cost? Your vital ... trends now
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What is Liz Truss planning?
Britain's new Prime Minister will announce a freeze on average energy bills of around £2,500. The freeze is more than £1,000 below the latest energy cap of £3,549, which is due to come into effect in October. Households will also still get a £400 rebate, a policy announced in the summer. Chancellor Kwasi Kwarteng has said the support package is likely to be needed 'this winter and the next', suggesting it will last at least 18 months.
How will it work?
Ministers will sign legal contracts with the energy suppliers requiring the firms to supply domestic customers with fuel at a fixed price. The taxpayer will then make up the difference between the fixed price and the market level.
Will businesses get support?
Yes. The PM yesterday committed to helping businesses facing soaring bills, saying firms will get help with the 'immediate price crisis' this winter. Ministers have been examining proposals to fix the unit cost of energy sold to businesses. But sources said the situation is 'complex' and that the full package may not be finalised until next week.
How much will it cost?
Estimates of the total cost vary wildly and will
