LIZ Truss today froze energy bills at £2,500 for two years in her bumper cost of living support package.
The new PM revealed a cap on wholesale prices in her announcement, enabling lower prices for households and businesses.
It means the average household will pay no more than £2,500 from October 1 under a new Energy Price Guarantee.
However, the cap is just on what firms can charge customers. Bills could still be higher, based on energy usage.
It signalled a shift back to fossil fuels to shore up Britain's supply withan an expansion of North Sea drilling.
Ms Truss today said Britain will grant dozens more exploration licences to try to boost stocks – but these won't start for years to come.
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She also lifted the fracking ban – but only where locals agree and it can be shown to be safe.
The bailout – which is being estimated at as much as £150billion – will help hard-up Brits as the cap was set to spiral from the current £1,971 to £3,549 next month.
Households will still get the £400 energy bills discount announced by former Chancellor Rishi Sunak.
Ms Truss today said: "This is the moment to be bold. We are facing a global energy crisis and there are no cost-free options."
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It follows her speech last night in which she said: "We will take action immediately to help people and businesses with bills but also take decisive action to tackle the root cause of these problems, so that we are not in this position again."
She had earlier told MPs: "I want to see us use more of our energy supply, including more oil and gas from the North Sea and nuclear power."
But she slapped down calls to extend the windfall tax on firms’ profits to help pay the bill – hitting out at Labour for their "same old tax and spend" stance.
As part of today’s energy package, the firms will be forced to plough billions more into boosting supply, beefing up energy security, and coughing up cash to help insulate Britain's leaky homes.
Experts at the Legatum Institute said the scheme will prevent 1.5 million people being plunged into poverty – but another million will still fall below the line.
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The initial scheme will last for this winter but as bills are predicted to stay high for months, it is certain to be extended.
Last night insiders would not be drawn on how much it may cost, saying gas prices were fluctuating too much to predict it.
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