Energy bills for the typical average use household on a standard tariff will be frozen at no more than £2,500 as Liz Truss took action to shield millions of people across the UK from the global gas crisis. The Prime Minister’s two-year plan, paid for by tens of billions of pounds of borrowing, will save the typical household around £1,000 from October and protect billpayers from further expected rises over the coming months.
The plan will see the UK Government limit the price suppliers can charge customers for units of gas, replacing the existing price cap set by regulator Ofgem. Ministers will provide energy suppliers with the difference between the new, lower price and what they would charge were this not in place.
However, Gareth Kloet, energy spokesperson for Go.Compare Energy, said that while this plan will offer some respite for a lot of households, it will still result in customers paying more and many are facing fuel poverty this winter.
