Incoming PM Liz Truss Drafts $149B Bailout to Freeze UK Energy Bills

Incoming Prime Minister Liz Truss has drafted plans to fix annual electricity and gas bills for a typical UK household at or below the current level of £1,971 ($2,300).

In discussions with her team and government officials in recent days, Truss has settled on a mechanism that will avert the massive increase in energy bills that is due to kick in at the start of next month under the existing pricing system, according to officials and advisers to Truss who were briefed on the plan. The policy could cost as much as £130 billion over the next 18 months, according to policy documents seen by Bloomberg.

Energy bills in the UK were due to jump 80% from October to £3,548 a year for the average household, forcing many poorer families to choose between heating their homes and other basics. Under the plans drawn up by Truss's team, that pricing regime will effectively be abolished and the energy regulator Ofgem will be sidelined.

Instead, ministers will set a new unit price that households will pay for electricity and gas, the people said. A spokesman for Truss declined to comment on the specifics of the plan, while campaign officials confirmed the details were accurate.

UK Prime Minister Liz Truss honors her predecessor after Boris Johnson's resignation: “Boris Johnson delivered Brexit, the COVID vaccine and stood up to Russian aggression. History will see him as a hugely consequential prime minister.” https://t.co/hgX5sVHKbf pic.twitter.com/lfp9YWYvid

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Asked how she'd feel about unleashing global nuclear annihilation, incoming UK Prime Minister Liz Truss didn't hesitate to announce she's "ready to do it." Upon taking office tomorrow, she'll already preside over a substantial "boots on the ground" UK military presence in Ukraine pic.twitter.com/7j646XCzKJ

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