The new Government, under Prime Minister Rt Hon Liz Truss MP, is taking bold action to protect British households from the spiralling costs of energy. I strongly welcome and support her plans, which include an Energy Price Guarantee to give people certainty with their bills.
The price guarantee will mean that an average energy bill for a typical household will be no more than £2,500 a year for the next two years. A typical household will save on average £1,000 a year from the two-year energy price guarantee. This comes in addition to the £400 Energy Bill Support Scheme for everyone, and the £1,200 of support for the most vulnerable households. Households who do not pay direct for gas or electricity from the mains will receive support from a fund, and will be no worse off.
Businesses will get equivalent support, under a scheme lasting six months. After this there will be ongoing support, particularly for vulnerable industries.
The package is expected to reduce inflation by up to 5 percentage points from where it otherwise would have been.
Plans will also be brought forward in the next few months to detail how the Government will make the UK a net energy exporter by 2040. The ban on fracking in England will end, meaning production of domestic shale gas could begin in as little as six months.
Additionally, the Prime Minister announced that the Government will launch two reviews; firstly, a review of energy regulation to fix the underlying problems. Secondly, a review to ensure we deliver net zero by 2050 in a way that is pro-business and pro-growth.
Cost projections for the delivery of the price guarantee are uncertain as they depend upon usage levels (which are highly dependent on weather patterns) and, for future three-month periods, the wholesale price of energy. The Chancellor of the Exchequer will set out the expected costs as part of the fiscal statement later this month.
Rt Hon Sir David Evennett MP 
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