UK PM lays out sweeping plan to cap energy prices – Times of India

LONDON: Britain will cap consumer energy bills for two years and funnel billions to prop up power companies, its new leader Liz Truss said on Thursday in a bid to tackle an energy crisis that has Europe and Russia squaring off in a deepening economic war. “ This is the moment to be bold, we are facing a global energy crisis, and there are no cost-free options,” Truss told parliament. Truss’s package, funded by government borrowing, could cost Britain £150 billion, rattling financial markets, where the pound is hovering around lows plumbed in 1985.
Russia’s invasion of Ukraine has exposed Europe’s reliance on Russian gas. European Union energy ministers will meet on Friday to discuss the 27-nation bloc’s response to the crisis, after a mixed initial response to a planned Russian gas price cap that risks provoking Moscow. President Putin threatened to sever all energy supplies if such limits were imposed.
In UK, Truss said average household energy bills would be held at around £2,500a yearfor two years. She said new methods of supply would also be introduced, with a moratorium on fracking being dropped and new oil and gas exploration licences issued for the North Sea. The treasury and Bank of England will launch a £40 billion scheme to shield energy firms from a liquidity squeeze.