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Liz Truss announces UK Ofgem energy price cap to be capped at £2,500

Byoxfordnewspaper

Sep 8, 2022

Prime Minister Liz Truss has set out her plans to tackle the energy crisis amid soaring bills across the UK.

Ms Truss announced that she will be freezing bills at the £2,500 mark, as the Government plans to ease the impact of the rising cost of living.

This new figure is around £500 higher than current levels, however the price cap is set to rise by 80% on October 1.

Once that rise happens, the £2,500 figure will be around £1,000 below the Ofgem price cap.

Oxford Mail: PAPA

The Prime Minister said the plan will be delivered by securing the wholesale price for energy, while putting long term measures in place to keep the prices low in the future.

On the plan, Ms Truss said: “Earlier this week I promised I would deal with the soaring energy prices, and today I am delivering on that promise.

“We are introducing a new energy price guarantee.

“It will give people more certainty. This guarantee means that from October 1 a typical household will pay no more than £2,5000 per year for the next two years.

“This will save a typical household around £1,000 per year and it will be in addition to £400 worth of support from the Government.”

Ahead of today’s announcement, Ms Truss blamed the soaring global prices on Russian president Vladimir Putin’s war in Ukraine and the “weaponisation” of gas supply in Europe.

She said: "We will take action immediately to help people and businesses with bills but also take decisive action to tackle the root cause of these problems, so that we are not in this position again.

“We will set out our plans to deliver on that promise and build a prosperous Britain for everyone.”