Liz Truss, the Prime Minister of the U.K., announced a package to help Brits with high energy bills.
A new energy price guarantee will give people peace of mind.
The prime minister said that the typical household will pay no more than £2,500 per year for each of the next two years.
There will be a cap in place.
The guarantee will be in place for the next six months. The prime minister said that more support would be given to vulnerable sectors.
Businesses should look at ways to become more energy efficient and produce their own energy, according to the prime minister.
The full cost of the package will be laid out by the finance minister later this month.
In the run-up to the announcement, there were questions about how the bill would be funded and whether it would land in the taxpayers' lap in the long run.
Energy bills for Brits were going to go up from October 1st. According to Cornwall Insight, the cap was expected to reach $5,341.08 in the second quarter of 2019.
The price cap in the U.K., set by the regulator Ofgem, essentially limits the amount a supplier can charge for their tariffs, but this limit has increased recently due to the rise in wholesale prices
Green levies in the House of Commons were temporarily suspended.
The new secretary of state for business, energy and industrial strategy has been named. A few months ago, he was quoted as saying that it was an "interesting opportunity."
The energy bill freeze was predicted byDeutsche Bank. It was thought that the October energy cap would be kept at 3,499 or that the freeze would be put at £2,500 a year.
According to reports, a £40 billion package would be put in place to support businesses with their energy costs.
According to the bank, the figure is half the amount spent on financial support during the Covid-19 epidemic.
More than 180,000 people in the U.K. have pledged to not pay their energy bills on Oct. 1 because of the increased energy cap.
Speaking to Sky News before the announcement, Lewis Ford said the Don't Pay campaign would go ahead if the measures implemented didn't bring costs down to well below the current price cap.
He told Sky News that they want 2021 levels. A lot of people won't be able to pay for this.
The price cap was in place in October of 2021. If no financial support was put in place, 12 million Britons would be in fuel poverty this winter. Fuel poverty is when you can't adequately heat a house.
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