Liz Truss is set to announce a £130 billion energy relief plan, according to Bloomberg.
The plan will reportedly freeze or reduce the energy price cap, which is currently scheduled to rise 80% to £3,548 in October this year, plunging UK households into thousands of pounds in extra energy costs.
Energy prices have soared due to the Russian invasion of Ukraine, which has seen gas and oil supplies from Russia choked off over the last six months as the war rages on.
Bloomberg reported the new policy would see the energy price cap alteration scrapped, with the £130 billion relief plan set to keep the burden from falling on UK families over winter.
Funding is currently under review, with Truss apparently trying to persuade nuclear and renewable energy companies to accept new 15-year contracts on a voluntary basis at fixed prices below the present rates, which are linked to spiking gas prices.
Businesses would also benefit from a £40 billion plan to assist business owners with the hefty energy price tag.
Business secretary Kwasi Kwarteng, who is pegged to take on the chancellor role under Truss’ government, is reportedly looking to fund the new policy via general tax means or a future consumer bills levy.
The new Prime Minister is allegedly undecided between a guaranteed unit price for companies to pay, or a percentage or unit price drop for energy suppliers to offer firms.