Fresh Bid As BBG Offers More Colour On Truss’ Energy Support Plans

GBP/USD registers fresh session highs, last dealing at $1.1580, on the back of a BBG source report offering some more colour on incoming UK PM Truss’s apparent fiscal plans. The piece has suggested that the total cost of the support package for households re: energy could reach GBP130bn over the next 18 months, with UK households set to benefit from the annual cost of typical energy bills being frozen at the current GBP1,971 (as opposed to the previously announced increased cap of GBP3,548 that was set to come into play in October, and the jump to somewhere over £5,000 that was expected to come into play in January).

• The source report goes on to note that the current “pricing regime will effectively be abolished and the energy regulator Ofgem will be sidelined. Instead, ministers will set a new unit price that households will pay for electricity and gas.”
• Chief executives of the energy companies were said to be “receptive to the idea, which means they will avoid a windfall tax and see the shortfall in their revenue covered by the taxpayer” after a meeting with Jacob Rees-Mogg, who is set to become Business Secretary in the Truss government.
• Finally, the source report noted that “the price that energy companies are allowed to charge
  consumers will be set by ministers will likely be reviewed every quarter.”