The government of the United Kingdom has frozen gas and electricity bills for the average household at £2,500 a year.
Liz Truss, the new UK prime minister, announced this on Thursday during a session with parliament.
She said the support package would last for two years.
“We are supporting this country through this winter and next and tackling the root causes of high prices, so we are never in the same position again,” Truss said.
She said businesses and public institutions like hospitals and schools will also get support, but for six months rather than two years.
The government said the cap would cut the UK’s soaring inflation rate by 4 to 5 percentage points.
Truss also said she would approve more North Sea oil drilling and lift a ban on fracking in a bid to increase the UK’s domestic energy supply.
Last month, the office of gas and electricity markets (Ofgem), Britain’s energy regulator, asked residents to brace up for 80 percent increase in energy costs.