In the UK, the price of energy has increased since last year. Following the pandemic, people started going back to work, school, and traveling again, which increased wholesale gas prices while reducing the UK’s supply due to Russia’s sharp decline in gas exports following its invasion of Ukraine.
Less than 4% of the UK’s total gas supply comes from Russia, but because Russia’s supply to nations like Germany, which buys 55% of its gas from Russia, has been restricted, Germany has been forced to increase its reliance on Norway, Britain’s primary supplier.
Former British Prime Minister Liz Truss, who unveiled a plan to raise supply in response to the UK’s shortfall, resigned today. Her proposal includes easing the country’s ban on fracking and awarding new licenses for oil and gas development in the North Sea.
The former prime minister also unveiled a plan to cap home energy costs at roughly 2,500 pounds per year, or about $2,823 for two years, in response to an anticipated 80 percent increase in energy costs this month. It was claimed that the government would cover the cost differential between the cap’s purchase price and the typical price providers would have charged.
Now is the time to take a risk. There are no free solutions to the world’s energy crisis, Truss said to the UK Parliament at the time, according to Reuters.
After only six weeks as prime minister, Truss announced his resignation today. According to Reuters, her economic policies stunned the markets and fostered discord within the Conservative Party, which contributed to the failure of her administration.
I do want to take ownership of my actions and express regret for the errors that were done. We went too far and too quickly, Truss told the BBC, according to a CNN story. I wanted to take action to help people with their energy bills and to address the issue of excessive taxes.
The energy market was in disarray as Chancellor Jeremy Hunt said on Monday that the Truss energy price guarantee for households will expire in April, according to the Financial Times. This announcement shifted some of the increasing energy costs back onto customers.
When the price cap expires in the spring of 2019, the average annual household gas bill in the UK could reach close to $4,508 at the current wholesale gas rates.
Read More: Flooding in Nigeria Claims 603 Lives and Uproots More than 1.3 Million People.!
According to Adam Bell, head of policy at energy consultant Stonehaven, the original plan was an unsustainable, unfunded guarantee, as reported by the Financial Times.
It is unclear how the energy bill-pay program will be dispersed in the long run due to the development of a new system, but in the short term, a tariff cap and a social tariff may be combined.
The Financial Times suggested that the problems of energy pricing and support financing be taken into consideration simultaneously.
Based on average costs of about $5,628, Ian Mulhern of the Tony Blair Institute for Global Change estimated that a 25% reduction in assistance for households that don’t receive benefits may save nearly $14 billion of the estimated $78.77 billion total annual support cost for households.
I took office during a period of significant economic and global unrest. Businesses and families were concerned about how they would pay their payments. The New York Times reported that Trump said in front of 10 Downing Street, “I recognize, however, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party.
Read More: Oslo Looks to Become World’s First Capital City With All-Electric Public Transit.!
Putin’s illegal war in Ukraine threatens the security of our entire continent. Our country had been held back for too long by low economic growth.
Truss declared that she would continue serving as both the prime minister and head of the Conservative Party until a replacement was selected within a week.
Liz Truss Resigns as PM, Leaving UK in Energy Crisis Turmoil first appeared on EcoWatch.
