Average annual residential energy costs may be limited
to £2,500, and businesses may also receive some relief.
Although the duration of the support is unknown, it is
anticipated that the government would borrow at least £100 billion to cover its
costs.
Currently, the yearly gas and electricity cost for a
typical home is projected to increase from £1,971 to £3,549 in October.
Without assistance with skyrocketing energy costs,
experts and NGOs have warned that lives will be in danger this winter as people
struggle to pay for the most basic necessities of life.
However, according to the charity End Fuel Poverty
Coalition, 6.9 million UK homes will still be in fuel poverty this winter, up
from 4.6 million the previous winter, if the energy price cap is frozen at £2,500.
The conflict in Ukraine, which has decreased supplies of
Russian gas, has been a major factor in the recent spike in consumer bills,
which came after steep increases in wholesale gas prices.
Prior to the statement, Ms. Truss stated that she was aware
of the concerns of businesses and families on "how they are going to make
ends meet this autumn and winter."
The need to increase our long-term energy security and
supply has become more obvious as a result of Putin's conflict in Ukraine and
weaponization of Europe's gas supply, she said.
She promised to "address the underlying causes of these issues so that we are never in this predicament again."
The government is anticipated to pay energy companies
for the gap between the wholesale price they pay for gas and electricity and
the amount they can charge customers in order to keep the amount that
customers' bills increase to a minimum.
