A few weeks back new prime minister Liz Truss announced her plans for the current energy crisis and it comes in the form of a price cap guarantee.
For households, the cap will be frozen at £2,500 per year which means you won’t pay anything over that for the next 2 years on your energy bills, there will also be additional support for vulnerable families including £400 for the most vulnerable.
This is being rolled out by the government securing the wholesale price of energy for 2 years with a temporary suspension of green levies.
The £400 injection originally confirmed by Rishi Sunak, former Chancellor of the Exchequer will still remain. This will be controlled by the energy companies and will be introduced to help cover costs of bills in October.
For businesses and the public sector, this guarantee will be equivalent for 6 months, but no specific details have been made public on how this will work, or the official length of time help will be offered. The hospitality industry, arguably to be one of the hardest hit will have additional assistance after 6 months however again, no specific details released yet.
The Business Secretary will review how to help vulnerable businesses and publish the findings in 3 months.
The prime minister announced that funding for this will not be through windfall tax on energy companies.
A key point to the announcement was a creation of a new Energy Supply Task Force which will increase North Sea gas production and the end of the moratorium of fracking.
If you have any questions or concerns regarding the announcement today, then please feel free to contact us for a chat.
