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    Two major UK energy firms back two-year freeze on customer bills: press

Summary

The plan would involve creating a multibillion-pound facility that would spread the cost of an emergency funding package over a decade.

by: NGW

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Complimentary, Natural Gas & LNG News, Europe, Political, News By Country, United Kingdom

Two major UK energy firms back two-year freeze on customer bills: press

Two of the UK's largest energy suppliers, British Gas owner Centrica and Octopus Energy, have backed plans under debate in the industry to create a fund that would allow customers' energy bills to be frozen for two years, The Guardian reported on August 15.

The plan would involve creating a multibillion-pound facility that would spread the cost of an emergency funding package over a decade, according to the UK newspaper. The proposals, first revealed by the Sunday Times, would see commercial banks step in to provide cash for a state-supported fund, which suppliers could then draw from to fund the freeze on customers' default-tariff bills at the present price cap of £1,971 ($2,400) over the next two years.

Consultancy Cornwall Insight forecast earlier this month that the energy price cap for households would reach £4,266 annually in the first three months of next year. The soaring cost of energy has triggered debate between the two contenders to become the UK's next prime minister, Liz Truss and Rishi Sunak, over how consumers can be shielded from the price spike.