ENERGY bills could be slashed by up to “25 percent” in areas approved for fracking, as the ban is lifted today.
In one of her first moves as Prime Minister, Liz Truss will announce a programme to end the UK’s ban on the gas extraction practice and vow to make more use of North Sea oil reserves.
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The moves are part of a “bold plan of action” to support struggling households and businesses with soaring energy bills, The Telegraph reported.
Ms Truss also hopes the plans will boost Britain’s own energy supply, with much of the country’s gas imported from Russia.
Fracking – which involves extracting shale gas from rocks by breaking them up with water and chemicals at high pressure – was banned in 2019.
It followed concerns from Britain’s oil and gas authority that it was not possible to predict the magnitude of earthquakes the practice might trigger.
Brits living close to fracking sites had complained of tremors when the process was taking place.
But while Ms Truss has said communities will need to give approval for the schemes, fracking companies will offer 25 percent reductions to locals’ energy bills as an incentive.
A landmark report is expected to say that it can be done safely under certain conditions.
The Prime Minister’s office Ms Truss will set out a plan to parliament which would involve both short- and long-term solutions to Britain’s crippling energy crisis on Thursday.
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Later today, the Prime Minister will say: “I know families and businesses across the country are worried about how they are going to make ends meet this autumn and winter.
“Putin’s war in Ukraine and weaponisation of gas supply in Europe is causing global prices to rise – and this has only made clearer that we must boost our long-term energy security and supply.
“We will take action immediately to help people and businesses with bills but also take decisive action to tackle the root cause of these problems so that we are not in this position again.”
Ms Truss’s team did not give any further details of the plans.
A source familiar with the situation told Reuters that Truss was considering freezing energy bills in a plan that could cost towards 100 billion pounds ($115 billion), surpassing the COVID-19 furlough scheme.
In a statement, Ms Truss said: “We will take action immediately to help people and businesses with bills…
“But also take decisive action to tackle the root cause of these problems, so that we are not in this position again.
“We will set out our plans to deliver on that promise and build a prosperous Britain for everyone.”
She also said Britain needed to boost its long-term energy security and supply.
During the leadership election campaign she said she favoured tax cuts over providing direct support to households facing astronomical rises in energy bills.
The average bill is due to jump to an eye-watering £3,549-a-year next month.
But further major hikes are forecast next year – with some estimates putting these at over £5,000.
Energy suppliers and the opposition Labour Party have called for a freeze on gas and electricity bills.
