Back to topic…why not go the whole hog and borrow enough to pay for the total energy bill? Everyone will be warm and cosy, businesses will thrive and expand. We’ll all have that extra cash in our pockets to spend and help fulfil our aspirations. What’s not to like? Heck, things will be so great that not only will taxes never have to rise, in fact they would probably fall according to LT’s economic model.
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@Dextrous63 , Wont work Dex, once the banks have lent all the money out
there will be no more money left to borrow, this accounts for
the system called “quantative easing” ?!
Now the world is awash with “money” and is the reason there are billionaires
now, where there were only millionaires just a few decades ago ?
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Truss about to unveil plans to help with soaring energy bills
Hi
Spot on Boot.
Moved for clarity
Hi
Donkeyman, Government Finance is very different to mine and yours.
Me and you are the same, we know what is coming in and we know what our bills are.
We are not like Government, our income does not go up as fast as the bills.
We cannot suddenly invent extra money.
The Government can, but and the big but is that it is noat a give away, we pay for it later,
Hi
So now we know, prices capped at £2500 a year, which in my my case means £34 a week extra which will not be spent in the economy.
If you add that to the increase in supermarket prices, that is recession time.
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Truss unveils two-year plan to cap typical energy bill at £2,500
Energy price cap to be set at £2,500 a year
The energy price cap will be fixed at £2,500 a year for a typical home, Prime Minister Liz Truss announces, for two years from 1 October.
She says she promised she would deal with soaring energy prices for families and businesses, adding today she is doing just that.
Truss adds the government is moving immediately to introduced a new price guarantee to protect them.
The plan will save the average household £1,000 a year, Truss says, and comes in addition to the £400 energy bills discount that has previously been announced.
After that six-month period, ministers plan to offer “focused support” to vulnerable industries.
Business energy costs capped for six months
Businesses will see their energy costs capped at the same price per unit - or kilowatt hour (kWh) - that households will pay under the government’s new plans.
The scheme will run for six months. Though this will be reviewed in three months’ time to see if the help should be more targeted towards certain industries. It could then be extended for vulnerable businesses such as the hospitality sector.
The scheme for businesses is in sharp contrast to the help being offered for domestic customers which will be in place for two years.
No windfall tax
We will not be giving into the leader of the opposition, who demands a windfall tax to fund the freeze, says Truss.
She says it would undermine the national interest, by discouraging the very investment we need to secure home grown energy supplies.
Truss says the government recognises people are struggling with their energy bills and adds emergency legislation will be brought forward to deliver the policy.
How the plan will be paid for will be laid out by Chancellor Kwasi Kwarteng as part of his fiscal event later in the month, she says.
Truss says action is also being taken to reduce the cost of energy over time.
A new Energy Supply Taskforce will negotiate with suppliers to agree long-term contracts, that reduce the price they charge for energy. They will negotiate with renewable producers to reduce the prices they charge as well.
“This is the moment to be bold”, Truss says, adding that there are “no cost free options” to the dealing with the global energy crisis.
There will be a cost to this intervention, she says.
Truss explains way the government will “defray” the cost is by ramping up supply.
Truss adds this means accelerating all sources of energy, including new north sea oil and gas contracts for exploration.
New oil licenses planned
Truss says government will launch a new oil and gas licensing round as early as next week, expected to lead to over 100 new licences for oil and gas drilling in the North Sea.
Ban on fracking lifted by the government
The ban on fracking, a technique for recovering gas and oil from shale rock, will be lifted by the government.
This will allow developers to seek planning permission where there is local support, Truss says.
Truss: Package will curb inflation by up to five percentage points
Liz Truss says her package will help curb soaring prices. Rising energy bills have been a key part of rising inflation in the UK.
Truss aims for UK to be an energy exporter by 2040
Truss says the UK will deliver a stable environment to give investors’ confidence as “we transition to net zero” .
She says the government will make sure the UK is a net energy exporter by 2040, through the use of fracking, expanded nuclear and renewable energy generation.
Truss talks the talk but money talks more … 
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Perhaps Liz is considering this next…
Quote:
## Switzerland considers JAILING anyone who heats rooms above 19C for up to three years if the country is forced to ration gas due to Ukraine war
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That will be interesting … 
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Deleted - Off topic
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Switzerland has nothing to do with The Vision of Truss … 
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None of which will be viable for years … 
Noted. Apologies 
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I think you’ll find the solution might involve getting a fleet of old vans and driving round the countryside with the words and tune to “Any old iron, any old iron, any any old iron” on a repeat tannoy loop.
The problem with a windfall tax is the power companies says it will limit the amount of money they will be able to invest in developing for the future.
I suppose this could come out of their billions of profits.
I simply think all supplies of essential services should be owned by the state. Not private companies that have to make a profit to satisfy their shareholders.
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So does anyone know how it’s actually going to work? Does this mean we’re all still going to have to pay over £200 a month even tho our ‘normal’ costs were half that?
It’s disgusting that they’re letting the oil companies profiteer in times of national/global crisis - shame on her and shame on her party!!
Sounds like it. But surely it can’t be that anything over £200 being invoiced by the energy company to the government! How does that delineate between a single person living in a small house whose new bill is £205 and a large family living in a 5 bed detached paying £800?? Both end up paying £200, and both households also getting that £66pcm for a few months as per original agreement.
I assumed the price cap is on the Unit Rate and Standing Charges, as it is at present?
That does not mean that everybody will pay £2,500 or that nobody will pay more than that. It means that the unit price is capped and if you calculate the average units used by a typical family home at the price capped rate, then they would not be paying more than £2,500.
However, if you use more units than “average” you may be paying more - it’s the unit prices that are capped, not the total amount you pay.
Have I misunderstood it?
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