UK to freeze energy bills
Later this month, the British government will outline the roadmap of an energy package intended to freeze energy bills over the next two years, according to a note obtained by Reuters.
Led by Prime Minister Liz Truss, the government has announced an annual GBP 2,000 cap on energy bills for average households starting from Oct. 1.
The move is meant to pre-empt an imminent 80% price increase to GBP 3,500 annually.
”This is the moment to be bold. We are facing a global energy crisis, and there are no cost-free options,” Truss notes to parliament Thursday, according to Bloomberg News.
The package is mainly focused on natural gas and electricity and is expected to ease consumer price inflation by 4-5 percentage points.
Later this month, the UK Treasury will publish estimates detailing the scope of expenses and the impact of the state taking up loans through bond sales in 2022 and 2023.
Bloomberg has previously estimated that the measure will cost upwards of GBP 200bn. However, this calculation is based on the price ceiling being valid for 18 months.
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