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The Guardian - UK
The Guardian - UK
Business
Alex Lawson Energy correspondent

UK price cap on household energy bills expected to cost £89bn

Protesters hold a sign reading ‘Freeze profits not people’ outside Ofgem’s office in London
A protest against Ofgem’s energy price cap rise in August, a move which led to the government announcing a price freeze funded by borrowing. Photograph: Guy Smallman/Getty Images

Liz Truss’s intervention to freeze energy prices for households for two years is expected to cost the government £89bn, according to the first major costing of the policy by the sector’s leading consultancy.

The analysis from Cornwall Insight, seen exclusively by the Guardian, shows the prime minister’s plan to tackle the cost of living crisis could cost as much as £140bn in a worst-case scenario.

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