The new British Prime Minister presents her plan to solve the energy crisis in the short and medium term
The new British Prime Minister, Liz Truss, will cap the tariff for each unit of energy consumed by British households over the next two years, so that the maximum annual bill costs of an average consumer household, receiving gas and electricity from the same supplier and pays by direct debit, from 1 October that is about 2,890 euros.
His government will also apply this measure to schools and universities and to companies, but the period is limited to six months. An assessment of the energy needs of those subsidized and their measures to reduce consumption will decide at the end of the semester who will continue to benefit from the government intervention, estimated as a whole at around 170,000 million euros.
Currency markets have sold off the pound sterling and the British currency has fallen against the dollar and the euro. The reason would be speculators’ assessment of the difficulties of the new Truss government, which replaced the resigned Boris Johnson on Tuesday. The new leader has confirmed in recent days that she will boost growth through tax cuts, deregulation and infrastructure investment.
However, the net cost of the program will be lower than the announced figure, as the guaranteed price will prevent the hitherto anticipated rise in inflation and also reduce debt payments. Truss has indicated that his administration will introduce reforms that go to the roots of the energy price problem, which would be, in addition to Putin’s policies, insufficient domestic production and energy market structure.
In this sense, he promised to lift the moratorium on gas extraction by hydraulic fracturing of bituminous rocks and to promote a new draw for 100 permits for gas and oil exploration in the North Sea. The new government also wants to accelerate the production of small nuclear reactors.
The Labor opposition has criticized Truss for failing to impose new special taxes – they were introduced by Johnson back in May – on electric utilities, which will make extraordinary profits of some €200,000 million over the next two years, according to a study by the Labor Party. Treasury Ministry that has not been published.
The Prime Minister defends her decision. These benefits would enable the necessary investment to make the UK an energy exporting country by 2040. The leader of the opposition, Keir Starmer, has read excerpts from texts by the Finance Minister, Kwasi Kwarteng, who advocate ‘fracking’ and the greater exploitation of the North Sea.
For Starmer, this hydrocarbon crisis must be corrected with policies to promote renewables and nuclear reactors. Both Conservatives and Labor support the commitment to achieve net zero carbon emissions by 2050.
Source: La Verdad
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