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UK PM Truss unveils energy plan to boost production, lower bills

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Britain’s new Prime Minister Liz Truss is addressing is the UK’s energy crisis. It’s a large part of the cost-of-living crisis that plagued the end of former Prime Minister Boris Johnson’s term. Truss’s plan breaks down into two parts.

Truss will implement a cap on domestic energy prices for homes and businesses. For the next two years, average household bills for heating and electricity will be no more than £2,500 or just under $2,900 per year. The move would prevent household bills from jumping 80% in October, after the regulator Ofgem said the price cap would rise to an average annual rate of £3,548 without further government intervention.

“We do need to make sure that our energy supplies are more resilient and more secure so we are never in this situation again, and we cannot be subject to global energy prices and the actions of dictators,” Truss said on Thursday while announcing her plan.

In addition to the cap, Truss said she will approve more North Sea oil drilling and lift a ban on fracking to increase the domestic energy supply in the UK.

“Today’s actions will deliver substantial benefits to our economy, boosting growth, which increases tax receipts and give certainty to business,” Truss said. “This intervention is expected to curb inflation by up to five percentage points, bringing a reduction in the cost of servicing government debt.”

Estimates have put the cost of the energy cap at more than £100 billion. The government said the package will be funded by borrowing rather than higher taxes imposed on energy companies. On Thursday, the Labor Party said the bill will be footed by taxpayers. The party also expressed environmental concerns and opposition to Truss’s plan.

“Doubling down on fossil fuels is a ludicrous answer to a fossil fuel crisis,” Sir Keir Starmer, labor party leader, said. “If all countries took the approach advocated by her new energy secretary of squeezing every single drop out of their fossil fuel reserves, global temperatures will rise by a catastrophic three degrees.”

The Biden Administration’s actions have aligned with the Labor Party and contrasted the UK’s new energy plan. This week, the administration reached a settlement that requires the government to reexamine potential climate damages from oil and gas leases. The decision has blocked drilling on more than 58,000 acres of land. The federal government will refrain from issuing any drilling permits across 113 leases spanning 58,617 acres in Montana, North Dakota and South Dakota.

{“But we do need to make sure that our energy supplies are more resilient and more secure. So we are never in this situation again, and we cannot be subject to global energy prices and the actions of dictators.”}
ONE OF THE FIRST ISSUES BRITAIN’S NEW PRIME MINISTER LIZ TRUSS IS ADDRESSING IS THE U-K’S ENERGY CRISIS.
IT’S A LARGE PART OF THE COST-OF-LIVING CRISIS THAT PLAUGED THE END OF FORMER PRIME MINISTER BORIS JOHNSON’S TERM.
TRUSS’S PLAN BREAKS DOWN INTO TWO PARTS.
FIRST — A CAP ON DOMESTIC ENERGY PRICES FOR HOMES AND BUSINESSES.
FOR THE NEXT TWO YEARS — AVERAGE HOUSEHOLD BILLS FOR HEATING AND ELECTRICITY WILL BE NO MORE THAN 25-HUNDRED POUNDS — OR JUST UNDER 29-HUNDRED DOLLARS — PER YEAR.
IN ADDITION TO THE CAP — TRUSS SAYS SHE WILL APPROVE MORE NORTH SEA OIL DRILLING —
[FOURTH SIDE BULLET: LIFT ON FRACKING BAN]
— AND LIFT A BAN ON FRACKING TO INCREASE THE DOMESTIC ENERGY SUPPLY.
{TRUSS ENERGY SOT 2}
[L3: “WILL DELIVE SUBSTANTIAL BENEFITS”]
[TITLE]
{“Today’s actions will deliver substantial benefits to our economy, boosting growth, which increases tax receipts and give certainty to business. This intervention is expected to curb inflation by up to five percentage points, bringing a reduction in the cost of servicing government debt.”}
{ANCHOR}
[L3: ESTIMATED TO COST OVER 100B POUNDS]
ESTIMATES HAVE PUT THE COST OF THE ENERGY CAP AT OVER 100 BILLION POUNDS.
THE OPPOSITION LABOR PARTY SAYS THAT BILL WILL BE FOOTED BY TAXPAYERS.
[L3: LABOR PARTY EXPRESS ENVIORNMENT CONCERNS]
ON THURSDAY — THE LABOR PARTY LEADER ALSO EXPRESSED ENVIRONMENTAL CONCERNS OVER THE INCREASE IN DRILLING.
[NAME SUPER: Sir Keir Starmer | LABOR PARTY LEADER]
{“But doubling down on fossil fuels is a ludicrous answer to a fossil fuel crisis. And if all countries took the approach advocated by her new Energy Secretary of squeezing every single drop out of their fossil fuel reserves, global temperatures will rise by a catastrophic three degrees.”}
THE LABOR PARTY’S CONCERN — SHARED BY THE BIDEN ADMINISTRATION.
THIS WEEK — THE ADMINISTRATION REACHED A SETTLEMENT THAT REQUIRES THE GOVERNMENT TO RE- EXAMINE POTENTIAL CLIMATE DAMAGES FROM OIL AND GAS LEASES PUT UP FOR SALE UNDER THE TRUMP ADMINISTRATION ON GOVERNMENT LAND IN MONTANA AND NORTH DAKOTA.
SIMILAR DEALS HAVE BEEN REACHED IN RECENT WEEKS FOR LEASE SALES UNDER THE TRUMP AND OBAMA ADMINISTRATIONS COVERING THOUSANDS OF SQUARE MILES OF PUBLIC LANDS IN COLORADO, MONTANA, NEW MEXICO, UTAH AND WYOMING.