Prime Minister Liz Truss has confirmed that that domestic energy bills will be frozen at around £2,500 as part of a package to ease the cost-of-living crisis - a move set to cost an estimated £150bn.
The Ofgem price cap will be replaced with a 'two year energy price guarantee'. It means that a typical 海角视频 household will pay no more than £2,500 a year on bill for two years from October 1 - the run-up to the next general election.
Ministers will press on with a £400 bills discount that has already been announced.
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What is available for businesses and how is it going to be paid for?
A scheme for businesses, schools, hospitals, other public organisations and charities will 'offer equivalent support' but last for just six months.
'Vulnerable' industries, including pubs and hospitality, could then receive longer-term support that will be set out later.
A review in three months will decide which sectors should receive ongoing help.
The guarantee on energy costs, which is aimed at saving families and businesses from financial ruin if bills continue to rise as predicted, will be funded by increased borrowing after Ms Truss rejected calls for a windfall tax on oil and gas producers.
It will involve businesses having their energy costs capped at the same price per unit - or kilowatt hour (kWh) - that households will pay under the government's new plans.
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The Government will wait until an emergency Budget this month to set out how much the vast intervention will cost, but estimates suggest it could be up to £150bn.
She said a new Energy Supply Taskforce will negotiate with suppliers to agree long-term contracts to reduce energy charges.
Downing Street has also ended the moratorium on fracking – the process of extracting shale gas by fracturing rocks with high-pressure water - despite environmental warnings and arguments that it will not lead to a fall in energy prices in the short term.
The Government claims drilling for shale could start within six months. A new round of North Sea gas and oil licences, due to start next week, could see more than 100 new permissions granted.
The Government will also temporarily remove green levies, worth £150, from energy bills but continue to fund projects to boost renewables.
The government has been lobbied by business groups to force energy providers to offer specific reductions on the unit price of the energy used by firms.
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That is a move that had been supported by the Federation of Small Businesses.
Martin McTague, Chair of the Federation of Small Businesses (FSB), has called on the Government to fix the price per unit of energy for small enterprises amid the worst economic climate he has seen in the 海角视频 for 35 years.
Speaking on Sky News , he said: “The cash is running out. They know that in October something like 60% of businesses are faced with renewing their energy contracts, and for many of them that will be a disastrous new contract.
“The urgency of this can’t be overstated.
“What we’re hoping we see is that the price per unit of energy will be fixed and any of the shortfall will be picked up by Government borrowing.”
Simon Tucker, Global Head of Energy, Utilities & Resources at Infosys Consulting, said the energy bill freeze will provide relative stability for working families, but 'it’s a sticking plaster, especially for those who are on the lowest incomes.'
He said: “The biggest beneficiaries will be small to medium sized businesses, like pubs, restaurants, and dry cleaners, whose operating costs will be shielded against the excesses of energy price rises.
“We’ll see pandemic-levels of spending to ease the energy crisis, but rationing remains a very real threat for at least another two years. The 海角视频 government’s energy strategy must focus on doing everything possible to secure new, reliable and low carbon energy sources, and to reduce consumption. Big investment in clean energy supplies like wind, solar, hydro and nuclear is an absolute imperative, but there also needs to be a greater drive to encourage consumers and business to use less. Reducing energy demand by 10-15% nationwide would make a huge difference when it comes to shoring up supply.”
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