Newly appointed UK Prime Minister Liz Truss has unveiled her long-awaited energy crisis plan. Under this, the government is taking responsibility to meet a part of the energy expenditure of the people. Truss also announced a raft of plans to deal with energy market volatility, including major cuts to climate change plans. According to his government’s announcement, there will be a freeze on household energy prices for the next two years.
Liz Truss announced the first major policy decision since taking office on Thursday. Like much of the world, the cost of living, including the cost of fuel and consumer goods, has risen sharply across the UK. To deal with this situation, Lee Truss announced these decisions as per the campaign promises.
Analysts say that the financial value of the government’s support program will exceed 10 billion pounds.
In this regard, Liz Truss said, private energy suppliers will receive a portion of the fuel price from the government. However, he did not immediately say anything about how much money and to which company it will be given.
After Russia invaded neighboring Ukraine, the world energy market started to be volatile. This is reflected in the United Kingdom, one of the most highly industrialized countries, which is dependent on imports for energy. Gas and electricity bills of the people of the country have already increased. Next October it will increase by 80 percent. Inflation in the country stood at 10.1 percent, the highest in the last 40 years. It is likely to increase further. Fuel price increase is one of the reasons.
In this situation, the government took these steps to reduce the suffering of low income people. Liz Truss and her finance minister, Kwasi Kwarteng, said the program would bring ‘significant benefits’, although the new plan would cost extra money. Not only that, the government is claiming that it will reduce inflation by 4-5 percent.
Kwarteng said households and small businesses would now “breathe a sigh of relief” as fuel prices were capped.
Liz Truss said, now the average electricity bill of a British family will stand at two and a half thousand pounds. That will be £1,000 less than next October at constant inflation.
The government also said that starting from the business sector to the non-domestic sector like schools and hospitals, the price of fuel will be fixed for six months. The Truss government will also review the UK government’s climate targets. But Boris Johnson, the former Prime Minister of his party, promised to diversify the energy sector by combining renewable and nuclear sectors.
Yesterday the Truss government said areas of progress to meet the zero carbon target by 2050 would be reassessed. In the face of energy demand, the government has announced the lifting of a ban on the controversial ‘fracking’ method of extracting fuel from mines. Source: AFP