BBC News 8 September 2022 - Edited by Jeremy Gahagan and Nathan Williams
- Prime Minister Liz Truss has announced plans to cap average household energy bills at £2,500 a year from October
- The support will last for two years, she announces in the Commons, saying "this is the moment to be bold"
- A typical household's gas and electricity bill had been due to rise from £1,971 to £3,549 in October
- Businesses are also getting a support package for six months which will provide "equivalent support"
- After the six-month period, further support will be targeted at "vulnerable industries", Truss says
- The government is also lifting the ban on fracking - which involves extracting gas and oil from shale rock
In her speech, Liz Truss announces reviews on energy regulation - firstly a review of energy regulation to fix "underlying problems", she says
"We want a new approach which will address supply and affordability for the long term.
"And secondly, we will conduct a review to ensure we deliver net zero by 2050 in a way that is pro-business and pro-growth."
Truss says the UK will deliver a stable environment to give investors' confidence as "we transition to net zero".
She says the government will make sure the UK is a net energy exporter by 2040, through the use of fracking, expanded nuclear and renewable energy generation.
The ban on fracking, a technique for recovering gas and oil from shale rock, will be lifted by the government.
This will allow developers to seek planning permission where there is local support, Truss says.
The prime minister says the UK will deliver a stable environment to give investors confidence as "we transition to net zero".
She adds the government will make sure the UK is a net-energy exporter by 2040, through the use of fracking, expanded nuclear and renewable energy generation.
Prime minister Liz Truss claims that capping the price of energy will help reduce the rate of inflation by 5%.
The Bank of England expects inflation to peak at 13% - though many economists reckon it could go much higher.
Rising energy bills have driven surging inflation.
It will be interesting to see what the economists have to say about this claim - we'll find out a little later.
New chancellor Kwasi Kwarteng will set out the expected costs of the energy package in a fiscal statement later this month, the PM said a little earlier.
There has been concern about the amount of borrowing needed to pay for this plan.
In her speech, Liz Truss announced a review of energy regulation to fix "underlying problems".
"We want a new approach which will address supply and affordability for the long term," she said.
And here's something that will come under major scrutiny from green groups and campaigners.
Truss said her government would "conduct a review to ensure we deliver net zero by 2050 in a way that is pro-business and pro-growth".
