Households still set to face ‘higher energy bills’ than COVID-19

That’s the EIC’s response to the PM’s intervention, although the measures are welcomed

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The Prime Minister announced a £2,500 energy bill freeze yesterday to combat the increase of the price cap to £3,459 from 1st October.

The EIC responded to Liz Truss’ intervention: “While the government relief has been much awaited, this still means most households will face a much higher energy bills compared to what we became accustomed to through COVID-19.

“Additionally, the limited range of support for the business sector still poses a great risk for the UK economy as a whole and still remains the leading recession risk – beyond the six-month cover currently billed in the £150 billion aid package.

“We hope the government can address the support package with more details and clarity for the upcoming Winter period and beyond in the coming days.

“Back in 2015 during the height of the EU-crisis, the Euro currency was saved by the famous ‘Draghi-Put’ that calmed markets over a 5-year period.

“Today’s ‘Liz-Call’ may not be sustainable over a longer period of time due to the simple fact that the Bank of England hasn’t got the same level of influence in the bond markets as the European Central Bank.”

You can read about the full energy care package here.