The Department for Business, Energy and Industrial Strategy has announced the introduction of the Energy Prices Bill, which will enshrine energy cost support for households, businesses and others in law.
The bill will ensure that energy costs are controlled over the winter, whilst also reducing inflation and supporting the growth of the economy. Powers to stop gas prices dictating the cost of electricity that is produced by cheaper renewables are also included in the bill.
Financial turmoil was faced by many consumers in the UK, with energy bills predicted to rise as high as £6,500 a year. Thanks tot government support and intervention, the average household will now face a £2,500 energy bill.
According to the government announcement, the bill will introduced the powers required to enable the following:
- Energy Bill Relief Scheme
- Energy Price Guarantee
- Alternative Fuel Payment
- Northern Ireland Energy Bills Support Scheme
- Energy Bill Support Scheme Alternative Fund
- Heat network support
- Pass-through requirements on intermediaries
- Cost-Plus Revenue Limit
- Contracts for Difference
Jacob Rees-Mogg, Business and Energy Secretary, said:
“Businesses and consumers across the UK should pay a fair price for energy. With prices spiralling as a result of [recent global events], the government is taking swift and decisive action.
“We have been working with low-carbon generators to find a solution that will ensure consumers are not paying significantly more for electricity generated from renewables and nuclear.
“That is why we have stepped in today with exceptional powers that will not only ensure vital support reaches households and businesses this winter but will transform with United Kingdom into a nation that offers secure, affordable and fairly-priced home-grown energy for all.”
Chancellor of the Exchequer, Kwasi Kwarteng, added;
“Our actions will mean that energy bills for the typical household will be half what they would have been this winter.
“We are protecting people, holding down inflation and preventing Putin’s energy price hike from causing long term harm to our economy by supporting businesses.”