You are here: Home - Household Bills - News -

Will new PM Truss freeze the energy price cap?

Written by:
New Prime Minister Liz Truss has pledged to take action over soaring energy bills, with rumours of a price freeze on the way.

In her first statement in Downing Street as the new Prime Minister, Truss said: “I will deal hands-on with the energy crisis caused by Putin’s war.

“I will take action this week to deal with energy bills and to secure our future energy supply.”

Soon after, reports suggested she would freeze the energy price cap at £2,500, cutting average energy bills by around £1,000.

Last month, industry regulator Ofgem confirmed the energy price cap – which applies to approximately 24 million on default tariffs – would rise 80% from £1,971 currently to £3,549 on 1 October 2022.

What is the energy price cap and when could it be frozen?

The energy price cap is a limit on the unit rate and standing charge that energy suppliers can charge. But it’s important to understand it is not a limit on bills as the figure is calculated using average energy use in the typical home.

Following the Ofgem announcement, fears have grown that up to 28 million people could face fuel poverty this winter, with those on pre-payment meters having to find over £700 a month, according to analysis by leading think tank Resolution Foundation.

During her Conservative leadership campaign, Truss floated the idea of a utility price freeze while compensating energy companies with government funds or loans to be repaid over a number of years. contacted Number 10 to confirm whether an energy price freeze is imminent. It said there is no official confirmation, adding that Truss is expected to provide further details in due course. Based on reports, it is expected to be announced as early as Thursday.

Related: See’s Seven ways to get help with energy bills this winter for more information.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week