Reports this afternoon suggest that Liz Truss is preparing to freeze the energy price cap at around £2,500 slightly higher than it present level but well below the new cap announced last week
The £400 universal handout to be given to households this autumn is expected to be factored in, so the energy price cap would effectively be maintained at about the current £1,971 rate.
The plan will be to fund the freeze through borrowing which will cost around £90b, the amount being paid back by taxpayer over time
The freeze will stay in place for winter 2022 and 2023 according to reports
Businesses will also get support, possibly a form of frozen energy prices, but the mechanisms and delivery for such a move are much more complicated than protecting consumers and are still being debated.
