Liz Truss allots $150 billion to keep energy bills below $2,300

Incoming Prime Minister Liz Truss has drafted plans to fix annual electricity and gas bills for a typical UK household at or below the current level of £1,971 ($2,300).

Truss is also finalising plans for a £40 billion ($46 billion) support package to lower energy bills for businesses.

In discussions with her team and government officials in recent days, Truss has settled on a mechanism that will avert the massive increase in energy bills that is due to kick in at the start of next month under the existing pricing system, according to officials and advisers to Truss who were briefed on the plan.

The policy could cost as much as £130 billion ($150 billion) over the next 18 months, according to policy documents seen by Bloomberg.