Liz Truss energy price freeze too ‘short-sighted’

The new Prime Minister, Liz Truss, has announced an energy price freeze to cap average annual bills at £2,500 for the next two years from October 1.

The Government has said it will fund the scheme through increased borrowing, with the cost predicted to be around £150billion.

But the chief executive of South East London Community Energy, a local energy advice organisation, has called the announcement “too short-sighted”.

Dr Giovanna Speciale said while the announcement of a Government subsidy was welcomed, it did not go far enough, as bills have already doubled in a year and a windfall tax on energy companies should also be introduced.

She said: “The proposed price cap represents a doubling of energy prices versus this time last year. 

“Against a backdrop of increased housing and food costs this will still mean that about one in five people in South London are unable to adequately heat their homes. 

“They will be left with no alternative but to turn off their heating this winter: Cold homes shorten lives and blight the health of the very young. 

“Without supporting the development of local renewables and a programme to insulate homes, it constitutes a short-term solution to a long-term problem of over-reliance on a volatile globally traded fossil fuel.”

Pictured top: New Prime Minister Liz Truss (Picture: Simon Dawson / No 10 Downing Street)