Energy price cap North East: How much expected Liz Truss bill freeze will save you
Under the cap bills will still be more expensive, but the saving compared with predicted rises is considerable
and live on Freeview channel 276
Ms Truss is expected to make the announcement later today and, whilst details are yet to be confirmed, it is reported that the new PM is considering capping typical bills at £2,500 a year.
This total would be £1,000 below the level they are expected to his in October and a considerable amount less than what they could hit over the next six months.
According to reports, this would be paid for through borrowing and repaid either by the taxpayer or higher bills over the long term.
At her first Prime Minister's Questions on Wednesday, Ms Truss said she would “take immediate action to help people with their energy bills but also secure a long-term energy supply”.
Her words were hit with criticism from Labour leader Kier Starmer who accused the Prime Minister of making the public foot the bill rather than energy companies, saying she would “borrow more than is needed because she won’t touch excess oil and gas profits”.
How much money would I save?
The current annual Northern energy cap is £1,931 but is set for an eye-watering climb to £3,494 from October 1.
The expected £2,500 energy cap would come on top of the £400 energy discount already announced.
That means the cap would effectively be £2,100. A typical household would therefore save at least £1,394 per year if the October price rise was replaced with the cap.
Energy providers Northern remain the cheapest in the UK, beating even the likes of Scotland and Wales. South Western are the most expensive provider as it stands, with a current energy cap at £2,009 and an October rise predicted to reach £3,578.
Residents in that area would save at least £1,478 under the new cap.