Britain: Liz Truss given mandate to form government – The plan for energy precision

By Thanasis Gavou

The new Prime Minister of the United Kingdom received an order to form a government from Queen Elizabeth Liz Truss.

The 47-year-old politician had to travel to Balmoral Castle near Aberdeen, Scotland, for the audience with the Queen, the first time in her 70-year reign that Elizabeth, 96, did not receive the country’s new leader at Buckingham Palace in London because of the motor problems he faces.

Earlier, the outgoing prime minister had made the same trip Boris Johnsonin order to officially submit his resignation, which was accepted by the monarch.

Mrs Truss will make her first speech as Prime Minister later this afternoon outside her front door Downing Street and then the task of appointing its ministers will begin. The first cabinet with the new composition will meet on Wednesday morning.

Reports today suggest that the new Prime Minister intends to tackle energy precision by imposing a cap on the wholesale price of natural gas supplied by energy providers in the United Kingdom.

This means that the state will cover the cost of buying gas above this limit, ensuring both the freezing of energy bills for households and the support of businesses. It is estimated that the energy bill for each household will freeze at around £2,500 a year (from £1,971 currently and before the announced increase to £3,549 from October).

It is believed that the cost of this intervention amounts to approx 90 billion pounds based on today’s data, although the exact amount of the burden on British taxpayers depends on the future course of wholesale gas prices. It is estimated that the measure will be in effect until the end of the government’s term in December 2024.

The cost of this package is expected to be covered by additional government borrowing.

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