The UK’s new strategy to counteract expensive bills
(Sustainabilityenvironme.com) – “I intervene immediately so that people and businesses are supported […] with a new Guarantee on energy prices. And I address the root cause of the problems by increasing the domestic energy supply”. With these words the new premier Liz Truss announced the freezing of UK energy bills for families. A measure that, from 1 October 2022 for the next two years, will lighten the expenses for electricity and gas of British citizens.
According to the new plans, the average unit price for customers with a standard variable tariff will be limited to 34,0 pence/kWh for electricity and 10,3 pence/kWh for gas. Those with a fixed tariff will be reduced to 17 p/kWh for electricity and 4.2 p/kWh for gas. “This – the Government explains in a press note – will save the average family about 1,000 pounds a year based on current energy prices”.
From UK energy bills to new drills
London will pay energy suppliers the difference between new prices and what retailers would charge in the UK for energy bills in the absence of government guarantees. Alongside this, the UK Government has also developed a new six-month program for businesses and other non-domestic energy users (including charities and public sector organizations such as schools) to provide equivalent support to that provided to consumers. At the end of the six months, it will introduce targeted and continuous support for vulnerable industries.
Prime Minister Truss also said she was ready to launch a new round of hydrocarbon licenses next week, lifting the moratorium on shale gas production in the UK. In addition to advancing with nuclear production to install 24 GW by 2050 under the new Great British Nuclear.