Octopus Energy and British Gas hand UK ‘significant’ plan to freeze bills for YEARS

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The global fossil fuel energy crisis, which was aggravated by the war in Ukraine, has hit Britons hard, as the average annual bill is forecast to rise above £4,000. This figure is more than three times higher than what people were paying a month ago, meaning that families will be thrust into fuel poverty, leaving not much income once they’ve paid for the electricity and gas.

In light of this, two of the country’s largest energy suppliers, Octopus Energy and Centrica, which owns British Gas, reportedly back a plan that seeks to freeze customer bills for two years.

The plan, which is being debated in the industry, would aim to create a multibillion-pound facility that could spread the cost of an emergency funding package over a decade, according to the Guardian.

Under this scheme, commercial banks would deposit cash into a state-backed fund, which suppliers could then draw on to meet the difference, rather than raising the price cap on energy bills, which is currently at £1,971.

The cost of such a scheme would then be paid back to over the next 10 to 15 years through an additional levy.

READ MORE: Brits pay TWICE more than French for energy bills

“So, spreading costs over a long period of time reduces the impacts on inflation, and that stops the spiral.

“With spirals the problem as we’ve seen, energy prices are flowing through everything in the economy, and that’s the thing that if you’re not careful, everyone’s chasing [inflation] up.

“Spreading is beneficial, it helps hard-pressed customers and it helps reduce the inflationary spiral.”

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