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    UK PM Liz Truss freezes household energy bills for two years

    UK PM Liz Truss freezes household energy bills for two years

    UK PM Liz Truss freezes household energy bills for two years
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    By CNBCTV18.com  IST (Published)

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    The newly-elected Prime Minister told the Parliament that the two-year "energy price guarantee" meant that household bills would not be more than 2,500 pounds a year for electricity and heating. 

    Amid rising prices, British Prime Minister Liz Truss has capped energy bills for two years at 2,500 pound a year.
    The newly-elected Prime Minister told the Parliament that the two-year "energy price guarantee" meant that household bills would not be more than 2,500 pounds a year for electricity and heating.
    The energy bills were due to rise to 3,500 pounds a year from next month, triple of what it was a year ago. Bills have been skyrocketing due to the Russia-Ukraine war and the consequences on the economy following Brexit and COVID-19.
    “We are supporting this country through this winter and next and tackling the root causes of high prices so we are never in the same position again," Truss told lawmakers.
    Public institutions such as hospitals and businesses would also get the support for six months instead of two years.
    The government said the cap would cut the UK's rising inflation rate by 4 to 5 percentage points. Inflation had hit 10.1 percent in July and according to the forecast, it is to rise to 13 percent before the year ends.
    The UK government did not mention how much the price would cost it, but estimates peg it at over 100 billion pounds. Truss also rejected the opposition's calls to impose windfall tax on the profits of oil companies. The cap would be paid out of Treasury funds and by borrowing.
    The opposition Labour Party said that means British taxpayers would have to foot the bill.
     
    With inputs from AP
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