Chancellor Nadhim Zahawi has reportedly drawn up plans that would cut gas and electricity bills by an extra £400 in January amid increasing worries over the cost of living crisis after the energy cap is lifted in October.
Treasury officials are not proposing to stop the lifting of the current price cap in the autumn, which is expected to increase annual bills to almost £3,600 ($4,367).
Instead a new lending scheme for energy providers is being proposed that would reduce bills in January, the Sunday Times reported.
Under the new proposals, Ofgem, the UK’s energy regulator which determines the level at which the cap should be set, would remove an allowance that suppliers can charge consumers which would instead be paid for via financing facilitated by the Treasury and Bank of England.
The energy price cap works by setting a limit on the maximum amount suppliers can charge for each unit of gas and electricity.
According to the Sunday Times, the total liability could hit £9 billion but the relief package would only come into effect at the start of the new year when energy prices are expected to surpass £4,000 a year.
The Chancellor’s reported proposals come as Labour joined the Liberal Democrats in calling for the energy price cap to be frozen in October.
Both Conservative party leader candidates — Liz Truss and Rishi Sunak — have ruled out the move, and it remains unknown whether they would take Mr Zahawi’s measures on board when one of them is announced as the next prime minister on September 5.
The UK’s departing Prime Minister Boris Johnson and Chancellor Nadhim Zahawi led emergency talks with energy companies to discuss how they plan to spend their bumper profits and explore ways to help customers struggling with the soaring cost of living.
The conference with utilities bosses — including those from Centrica, Drax Group and RWE — came after market analysts at Cornwall Insight predicted annual bills were going to rise to about £3,582 ($4,380) in October, from £1,971 previously, before rising even further in the new year.
The meeting failed to produce any immediate, concrete help for consumers but Keith Anderson, the chief executive of Scottish Power, proposed that bills should be frozen at their present level of £1,971 for two years and that suppliers would cover the gap with wholesale price by borrowing from a “deficit fund” supported by commercial banks.
Mr Anderson’s idea, which could reportedly cost up to £50 billion to implement and repay over 10-15 years through taxation and consumer bills, had been floated in April but was reportedly rejected by former chancellor Rishi Sunak in favour of a £15bn payout to households.
More than 29 million households will be eligible for a £400 discount on their energy bills. Energy suppliers have been instructed to pay households the discount in six instalments, beginning in October.
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
UAE currency: the story behind the money in your pockets
Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
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MATCH INFO
Hoffenheim v Liverpool
Uefa Champions League play-off, first leg
Location: Rhein-Neckar-Arena, Sinsheim
Kick-off: Tuesday, 10.45pm (UAE)
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
