Liz Truss is expected to lift the moratorium on fracking on Thursday and promise more drilling in the North Sea, while unveiling long-awaited plans to increase the country’s energy security.
Domestic annual energy bills are frozen at around £2500 for the average household by putting a cap on the price of a unit of energy, with anything above that being paid by the government as part of the package to ease the cost of living.
Green charges on energy bills will be abolished and businesses will be protected from the surge in energy prices, which are expected to cost more than £150 billion.
The new prime minister will announce an immediate end to fracking announced in 2019, allowing companies in the UK to drill for shale gas by applying for a construction permit, the government reported. Daily telegram.
The lifting of the ban is expected to take effect soon, as new changes could be made with a written ministerial statement to parliament rather than introducing full legislation.
Amid opposition from local communities to fracking, Ms Truss previously said the extraction should only take place with support from local communities. According to the report, fracking companies would offer a 25 percent discount on their energy bills to get support and encourage people.
Mrs. Truss had vowed to lift the ban on fracking during her campaign for Tory leadership. She spoke out in favor of expanding oil and gas drilling in the North Sea.
While fracking is being pushed for greater energy security, the practice remains hugely controversial as it can cause earthquakes, lead to groundwater contamination and negatively impact climate change.
Ahead of her Thursday announcement, Ms Truss said: “I know that families and businesses across the country are concerned about how they are going to make ends meet this fall and winter.
“Putin’s war in Ukraine and the arming of gas supplies in Europe are driving world prices up – and this has only made it clearer that we need to increase our long-term energy security and supply.
“We will take immediate action to help people and businesses with bills, as well as act decisively to address the root cause of these issues so we don’t find ourselves in this position again.”
Meanwhile, Labor argued that those who support the return of onshore fracking “misunderstand the situation we find ourselves in,” citing comments by then-business secretary Kwasi Kwarteng.
In March, Mr. Kwarteng – now Chancellor – wrote in: The mail on Sunday“Even if we lifted the moratorium on fracking tomorrow, it would take ten years to extract enough volumes – and that would come at a high cost to communities and our precious countryside.
“No amount of shale gas from hundreds of wells scattered across rural England would be enough to lower the European price in the short term.
And with the best will in the world, private companies will not sell the shale gas they produce to UK consumers below market price. After all, they are not charities.”
Labor leader Keir Starmer also criticized Ms Truss on Wednesday for financing her energy plan with loans and for making working people pay the bill while allowing energy companies to continue making huge profits amid the cost of living crisis.
“Every pound of excess profit she chooses not to tax is an extra pound on loans that working people will have to repay over the next few decades,” he said. “Families and public services need every cent they can get. How on earth does she think now is the right time to protect Shell’s profits?”
Ms Truss is also expected to face the anger of environmentalists over promises of drilling and fracking in the North Sea in light of the UK’s target of becoming a net zero carbon emitter by 2050.