HomeFinancial MarketsIncoming UK Prime Minister Plans £40 Billion Energy-Aid Package for Businesses

Incoming UK Prime Minister Plans £40 Billion Energy-Aid Package for Businesses

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.

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