Incoming UK Prime Minister Liz Truss is in the process of finalizing plans for an aid package to lower the energy bills of UK businesses. The package, expected to be £40 billion, could be distributed in two ways.
The first option that Truss is considering would be to set a guaranteed unit price that businesses will pay on their energy bills. The alternative approach would be to set a percentage or price reduction that each business will be entitled to. The UK government will also ensure to reimburse energy suppliers for their lost income as a result of the bill reductions.
Scheduled to be announced later this month, the policy is expected to be reviewed on a quarterly basis at which point the price of energy charged to businesses may be adjusted. The policy is to be implemented in October when a large volume of companies’ energy contracts are ending.
A household energy policy is also in the works, with Truss’ government expected to spend £130 billion to reduce household energy bills over the next 18 months.