UK weighs huge support package as Europe battles energy crisis

Britain’s new prime minister was working on what looks set to be Europe’s biggest energy crisis support package so far as countries scramble to protect households and businesses from soaring bills and shore up struggling suppliers.

Liz Truss, who took over from Boris Johnson on Tuesday, is planning to freeze household energy bills at the current level for this winter and next, paid for by government-backed loans to suppliers, the BBC reported, adding the scheme could cost 100-130 billion pounds ($116-151 billion).

The government is also working on help for businesses, but this is likely to be more complex and would be reviewed more frequently, the BBC said.

European governments are pushing through multibillion-euro packages to prevent utilities from collapsing and protecthouseholds amid soaring energy costs triggered mainly by the fallout from Russia’s invasion of Ukraine.

Benchmark European gas prices have surged about 340% in a year, and jumped as much as 35% on Monday after Russia’sstate-controlled Gazprom said it would indefinitely extend a shutdown to the major Nord Stream 1 gas pipeline.

via Reuters