For companies, prices are frozen for six months.
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The new British Prime Minister, Liz Truss, announced on Thursday 8 September a two-year freeze on energy prices for private individuals, at 2,500 pounds (more than 2,800 euros) per year for an average family, in the face of the skyrocketing cost of living. The long-awaited measure corresponds to savings of around £ 1,000 per year compared to the price increases planned for October 1, she said. Liz Truss, who was speaking in Parliament. The prime minister made it clear that energy prices will be frozen for six months for businesses.
Liz Truss presented a series of measures, which also include the temporary lifting of energy taxes intended to finance the transition to carbon neutrality. This plan has not been evaluated but could cost tens of billions of pounds, financed by loans. According to several media outlets, the addition would amount to 150 billion pounds.
That’s more than the £ 70 billion spent to pay the wages of workers made redundant during the pandemic. “This is a time to be bold. We are facing an energy crisis (…) and these interventions will come at a cost”, the leader in Parliament justified. Pressures grew for the government to put an end to rising energy bills and the cost of living crisis. Economists, NGOs, trade unions and energy companies have warned of a humanitarian disaster this winter.
In the UK, wholesale electricity and gas prices have so far been entirely passed on to businesses and households, despite the aid granted by the previous government, which quickly proved to be very inadequate. Thursday’s announcements add to a £ 400 cut on consumer bills that had already been announced by the previous executive.