Europe is bracing for a tough winter, with electricity bills surging and governments scrambling to curb hefty electricity bills. The UK’s new prime ministers has rolled out a new plan to deal with soaring bills. What does the plan change?
- Nord Stream 1 Supply Halted
- UK PM Truss announces price caps for energy bills
- Energy bills soar across Europe
Pieces of the crisis were in place but the supply crunch has reached an unprecedented level.
What is exacerbating the supply crunch?
Plan To “Freeze” Supplies This Winter
Putin said European calls for a price cap on Russian gas were “stupid”, in his speech at an economic forum in Russia. He added that they would lead to higher global prices and economic problems in Europe.
Russia is the world’s second-largest oil exporter and top natural gas exporter.
UK PM Lizz Truss Walks the Talk
The average household in the UK pays an electricity bill at least 30 per cent higher than in its European Neighbours with the country’s reliance on Kremlin adding to its woes.
What does the price cap change?
The plan would cap the average cost of energy for households at £2,500 a year from October, still well below the £3,548 they would have paid without intervention.
The move is largely being seen as helpful despite worries that the unprecedented cost of living crisis in Europe might need more government intervention.