• News
    • Archive
  • Celebrities
  • Finance
  • Crypto
  • Entertainment
  • Travel
  • Health
  • Others

UK's Plan To Limit Energy Bills Will Provide Some Relief To Retailers

43.8KShares
617.8KViews

Liz Truss, the new prime minister, will stop energy bill increases for all households for the next two years. This is part of her plan to keep individuals from experiencing struggles. So, the UK's plan to limit energy bills will provide some relief to retailers and also to consumers.

Until 2024, the average annual cost of a family's energy bill will be capped at £2,500 (2,897 USD). Truss refused to put a price on the massive support scheme, saying only that "extraordinary times call for extraordinary measures."

While this is good news for businesses, the six-month price cap is much shorter than many had hoped for. Although there is no additional support for the most vulnerable, there are concerns that the measures are not specifically targeted enough.

Because of this, millions of people are anticipated to experience fuel poverty this winter. The energy price cap, or the maximum amount suppliers are permitted to charge households for each unit of energy they use, was scheduled to increase to £3,549 (4,115 USD). This rule starts in October for the average household.

The unit price will be capped to prevent bill increases for customers, but household energy costs will vary depending on how much gas and electricity are used. The difference between what energy companies pay in wholesale prices for gas and electricity and what they can charge consumers will be covered by the government.

COPYRIGHT_WI: Published on https://washingtonindependent.com/uks-plan-to-limit-energy-bills-will-provide-some-relief-to-retailers/ by William Willis on 2022-09-09T06:52:02.519Z

After hearing calls to extend a windfall tax on gas and oil company profits to fund the package, Ms. Truss decided against doing so. Sir Keir Starmer, leader of the opposition Labour Party, criticized her for being "driven by dogma" for rejecting a windfall tax to pay for it, claiming that "working people will pay for that.

A bar graph showing household energy bill through blue and red bars
A bar graph showing household energy bill through blue and red bars

To avoid properly taxing the "eye-watering profits" of oil and gas companies, Liberal Democrat leader Ed Davey has accused the government of enacting a "phony freeze."

He said:

This will still leave struggling families and pensioners facing impossible choices this winter as energy bills almost double.

However, Ms. Truss said that it was time to be courageous in her defense.

"We are facing a global energy crisis, and there are no cost-free options," she said. This year, gas prices have gone up a lot, mostly because of the war in Ukraine, which has cut off Russian gas supplies.

Experts and charities said that people's lives would have been in danger this winter if they hadn't gotten help with their high energy bills. They said that people would have been unable to pay for basic living expenses without help. The head of Citizens Advice, Dame Clare Moriarty, said that the package will give "much-needed relief" to millions of people, but she is worried that it won't change the trends that Citizens Advice is seeing.

Moriarty said:

We're seeing problems turn up in the summer, which we would normally expect to be winter.

Ms. Truss also gave an overview of plans "to make sure that we have long-term security of [energy] supply." This includes lifting the ban on fracking for shale gas "where there is local support for it" and giving new oil and gas exploration licenses for the North Sea.

In addition to the plan that was mentioned above, the government in the UK will also implement some of the following plans:

  • Negotiate long-term contracts with renewable and nuclear power companies.
  • Launch a scheme with the Bank of England to help struggling UK energy firms.
  • Remove green levies, which add £150 to bills each year and are covered by the £2,500 cap.
  • New oil and gas licensing round next week to boost North Sea production.
  • Continue with a previously announced £400 energy bills discount for all households.

Liz Truss Announced A Two-year Cap On Household Energy Bills Of £2,500

Energy bills capped at £2,500

Conclusion

Borrowing will be used to pay for the dramatic state intervention, adding to the UK's massive debt load. Due to the unpredictable nature of energy prices in the global energy markets, the total cost of the support cannot be determined in advance.

After that, there will be more targeted help for industries like hospitality, with a review in three months to decide which ones should get help.

There is no limit on how much businesses have to pay for energy right now, and a specific amount of help has not been given. This is because the wholesale energy market works differently than the retail market.

Those who have fixed contracts for their energy won't be affected by the price guarantee, but ministers are sure that these customers will get discounts in the future after talking with suppliers.

Share: Twitter | Facebook | Linkedin

About The Authors

William Willis

William Willis - William Willis is a freelance writer and social media manager who specializes in assisting finance professionals and Fintech entrepreneurs in growing their online audience and attracting more paying customers. William worked as a bank teller and virtual assistant for financial firms in the United States and the United Kingdom for six years before beginning her writing career. William is a strong force in the workplace, inspiring others to work hard and excel with his optimistic attitude and boundless energy. He enjoys hiking, crocheting, and playing video games with his children in his spare time.

Recent Articles

  • Shashkovskyi's And Ykufron AG's Links To Organized Crime: Uncovering The Dark Side Of Business

    Finance

    Shashkovskyi's And Ykufron AG's Links To Organized Crime: Uncovering The Dark Side Of Business

    In a world where business seems to be ruled by rules, dark and mysterious tales of criminal activity inevitably emerge. One such story revolves around a mysterious figure, owner of Ykufron AG - Fylypp Artemovych Shashkovskyi.

  • Unleash Your Business Potential With Cloud Data Management

    Finance

    Unleash Your Business Potential With Cloud Data Management

    Are you ready to take your business to the next level? Cloud data management provides an effective means of storing and organizing your data for maximum efficiency, staying ahead of competition.

  • Why Finding The Right LEI Registration Agent Is Vital

    Society

    Why Finding The Right LEI Registration Agent Is Vital

    Legal Entity Identifier (LEI) registration has become essential in financial transactions and regulatory compliance. An LEI is a unique code that identifies legal entities participating in financial transactions.

  • Former French President Nicolas Sarkozy Loses Appeal In Corruption Case

    News

    Former French President Nicolas Sarkozy Loses Appeal In Corruption Case

    Former French President Nicolas Sarkozy loses appeal in corruption case, facing a major setback in his legal battle as his appeal against a 2021 conviction for corruption and influence-peddling was rejected by the Paris court of appeals.

  • Lizzo Weight And Height, Lifestyle, Career, And Achievements

    Celebrities

    Lizzo Weight And Height, Lifestyle, Career, And Achievements

    Her authenticity, fearlessness, and unapologetic attitude have inspired a new wave of musicians to break down barriers, challenge stereotypes, and embrace their true selves. Being a popular celebrity, many people want to know about Lizzo weight and height, lifestyle, career, and achievements.

  • Best PC Headphones No Mic - Comfort Meets Performance

    Reviews

    Best PC Headphones No Mic - Comfort Meets Performance

    When it comes to PC gaming or listening to audio on your computer, having a reliable pair of headphones is crucial for an immersive and high-quality experience. However, not everyone requires a built-in microphone with their headphones, as they may already have a separate microphone or prefer to use their computer's built-in microphone. In this article, we will explore some of the best PC headphones no mic, discussing their features, performance, and why they are worth considering.

  • Beats Headphones Vs Bose - Which Brand Offers The Best For You

    Reviews

    Beats Headphones Vs Bose - Which Brand Offers The Best For You

    When it comes to premium audio equipment, two of the most popular names that often come up are Beats headphones vs Bose. Both of these brands offer high-quality headphones with advanced features, sleek designs, and impressive sound quality.

  • 3 In 1 Rotating Game Table - Space-Saving Entertainment

    Reviews

    3 In 1 Rotating Game Table - Space-Saving Entertainment

    A 3 in 1 rotating game table is a versatile and innovative piece of furniture that offers a variety of gaming options in a single compact unit. Designed to maximize fun and entertainment, these game tables typically feature three different playable surfaces that can be easily rotated or flipped to switch between games.

  • Blinding Headlights - U.S. Drivers Complaining Yet Again

    Trending

    Blinding Headlights - U.S. Drivers Complaining Yet Again

    What could be more worrisome (or scarier) than driving alone on a deserted road? Well, several vehicles going in the opposite direction with blinding headlights. Too much brightness can distract you and ruin your focus - and that’s dangerous!

  • Tianyancha - The Ultimate Business Data Platform

  • EXWeb - A Revolutionary Platform For Web Development

  • IRacing Planner - Your Path To Success

  • EZTV RE - A Tale Of Online Piracy

  • Peter Stormare - Journey From Sweden To Hollywood