Energy bills to be frozen at £2,500 a year as Liz Truss reveals her energy plan

Liz Truss has announced that the energy price cap will be frozen at £2,500 a year as part of her energy plan.

The price cap will be fixed at this rate for two years from October 1st, something the newly-elected prime minister claims will save a ‘typical household’ around £1,000 a year.

Her energy plan also includes the previously-announced £400 non-repayable bursary from Boris Johnson’s regime.

Additionally, businesses, charities, and public sector organisations will see their energy costs capped at the same price for the next six months. This will then be reviewed every three months.

Truss didn’t reveal how her scheme will be funded, though she did confirm it will not be funded by a windfall tax on energy companies, something the Labour party has continuously called for throughout the cost of living crisis.

Addressing the commons, she said: “I recognise that people are struggling with their energy bills and that is why I have brought forward this debate as soon as possible to give people reassurance before this winter that energy bills will be affordable.”

Truss then added: “We will not be giving in to the leader of the opposition who calls for this to be funded by a windfall tax.

“This would undermine the national interest.”

Number 10 / Flickr

Truss said ‘this is the moment to be bold’, adding: “We are facing a global energy crisis and there are no cost free options. There will be a cost to this intervention.”

The new prime minister also confirmed she will life the ban on fracking ‘our huge reserves of shale which could get gas flowing as soon as six months’.

She added that the government will make sure the UK is a net-energy exporter by 2040 through the use of fracking, expanded nuclear and renewable energy generation.