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Opinion
Javier Blas

Britain Goes the Wrong Way on Energy Bailout

Truss price freeze ignores critical questions on conservation, funding.

Liz Truss speaking in the House of Commons, to set out her energy plan.

Liz Truss speaking in the House of Commons, to set out her energy plan.

Photographer: House of Commons - PA Images/PA Images

Liz Truss’s first statement to Parliament as prime minister was one for the books: an energy bailout worth probably 5% of gross domestic product.

Truss on Thursday froze UK energy retail power and gas bills for the next 24 months, so an average household would pay no more than £2,500 ($2,877) per year, instead of the £3,549 that regulators set for the next three months and well below the £4,000-£5,000 expected in 2023. On top of that, she promised the “equivalent” protection to businesses for six months.