Truss plans to freeze UK energy bills for 18 months

By: News Team

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Liz Truss, who assumes her post as British Prime Minister on Tuesday, plans to freeze energy bills for a period of 18 months and will allow companies that supply gas and electricity to obtain loans from the Government to subsidize these bills, according to the BBC.

An 80% increase in the cap that energy companies are allowed to charge households is scheduled to take effect on October 1, sector regulator Ofgem recently announced.

That limit has been set at 3,549 pounds (4,116 euros) per year for each household in the country.

Given the seriousness of the situation, Truss plans to announce his new plan to help British families on Thursday, according to the British public broadcaster.

Under Truss’s plan, the government would guarantee loans to energy companies that would be used to freeze or at least reduce bills this winter and next.

The energy company Scottish Power has indicated that freezing all bills at the current maximum limit of 1,971 pounds (2,286 euros) for two years would cost almost 100,000 million pounds (116,000 euros).

The BBC notes that the details of how small businesses will be helped to deal with the energy spike are still being reviewed.

“It is encouraging that the Government is seriously considering the support it can provide to businesses during these very difficult times,” Alex Veitch, a representative of the British Chambers of Commerce, told the media.

“But it remains to be seen whether these plans will go far enough to offer the help that many companies so desperately need,” he added.

According to the Bank of England, year-on-year inflation may reach 13% by the end of the year and the country may enter a recession before the end of 2022, a situation that may last all of 2023.

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