Government announces energy price cap

The prime minister has set out a new Energy Price Guarantee, with the aim of supporting people and business with their energy bills.

It means the typical UK household will now pay up to an average of £2,500 a year on their energy bill for the next two years.

The cap is automatic and applies to all households.

Based on current energy prices, this will save the average household around £1,000 a year.

Prime Minister Liz Truss said: "Decades of short-term thinking on energy has failed to focus enough on securing supply – with Russia’s war in Ukraine exposing the flaws in our energy security and driving bills higher. I’m ending this once and for all.

"I’m acting immediately so people and businesses are supported over the next two years, with a new Energy Price Guarantee, and tackling the root cause of the issues by boosting domestic energy supply.

"Extraordinary challenges call for extraordinary measures, ensuring that the United Kingdom is never in this situation again."

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