Energy usage, via Istock

Liz Truss commits to support public sector organisations with energy costs

New Prime Minister Liz Truss has addressed her Conservative Government’s plan to tackle the ongoing energy crisis that threatens to damage the stability of households across the UK along with a commitment to support businesses, charities and public sector organisations with their energy costs this winter. It was announced that an average energy bill for a typical household will be capped to no more than £2,500 per annum for the next two years, commencing from 1st October.

To ensure the delivery of this plan, the removal of green levies will be implemented, worth up to £150 per household.

Ms Truss has not outlined the costs involved with her energy plan, deferring this information until Kwasi Kwarteng, the chancellor, details these costs later this month once he has made a fiscal statement.

Labour’s counter call of a rise in the existing Windfall tax has been dismissed by Truss and her party, where she claims:

The reality is that we can’t tax our way to growth.

“This is the moment to be bold. We are facing a global energy crisis and there are no cost-free options.”

Secretary of State for Business, Energy, and Industrial Strategy Jacob Rees-Mogg has released a party representative statement outlining this energy plan:

“HM Government is acting to protect British households from the spiralling costs of energy. The Energy Price Guarantee (EPG) which will give people certainty with their bills. The EPG will apply from 1 October and will discount the unit cost for gas and electricity use.

“This guarantee, which includes the temporary suspension of green levies, means that from the 1st October a typical household will pay no more than £2500 per year for each of the next two years. This will save the typical household £1000 a year. It comes in addition to the £400 Energy Bill Support Scheme.

“The scheme will start on the 1st October 2022, when Ofgem’s new price cap is due to come into effect. Cost projections for the delivery of the EPG are uncertain as they depend upon usage levels (which are highly dependent on weather patterns) and, for future three-month periods, the wholesale price of energy.

“The new guarantee will apply to households in Great Britain, with the same level of support made available to households in Northern Ireland.

“HM Government will also support all business, charities and public sector organisations with their energy costs this winter, offering an equivalent guarantee for six months.”

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