LONDON - New British Prime Minister Liz Truss announced on Thursday that the energy price cap will be fixed at £2,500 (S$4,046) a year for a typical household for two years from Oct 1.
Ms Truss - appointed Prime Minister on Tuesday - had said she would take immediate action to protect consumers and businesses.
The announcement marks a major turnaround from a leader who had ruled out "handouts" during her campaign to succeed Mr Boris Johnson but been forced to act to stop families falling into destitution and businesses from going bust.
Charities had warned that millions of households face destitution this winter if the cap on average energy prices were allowed to jump 80 per cent in October and again in winter.
Companies are also at risk. Many have received new energy bills that they say threaten to put them out of business.