UK prime minister announces energy price freeze plan

By Karim El-Bar

LONDON (AA) – The British prime minister announced on Thursday her plan to deal with the energy crisis, pledging to freeze electricity and gas bills so that the average household pays no more than £2,500 ($2,163) per year.

Liz Truss' energy price freeze would last two years and save families on average £1,000.

"The is the moment to be bold," she told parliament, adding that there were no cost-free options.

A separate, six-month scheme of the same support will be given to business, schools, and hospitals, and targeted support will be announced for the hospitality sector at a later date.

The cost of the government scheme is reported to be £100 billion or more, and Chancellor Kwasi Kwarteng will announce the cost and how it will be paid for in a financial statement later this month.

Truss ruled out funding the scheme through further windfall taxes on oil and gas companies' profits, which Sir Keir Starmer, leader of the opposition Labour Party, have called for.

Truss also said she would boost domestic energy production to increase supply.

"We are also accelerating all sources of domestic energy, including North Sea oil and gas production," she said.

"We will be launching a new licensing round which we expect to lead to over 100 new licences being awarded."

The ban on fracking will also be lifted.

Despite this boost in fossil fuel production, Truss said she remained committed to Britain's target to hit net zero by 2050.