Price of war: UK and EU throw $500 billion at energy subsidies
'The inbox from hell': British journalist lays out challenges for new UK PM ReplayMore Videos ... (16 Videos)'The inbox from hell': British journalist lays out challenges for new UK PM EU countries agree to reduce gas consumption to prep for winterIEA director says Europe needs to lower gas consumption to prepare for winterNord Stream 1 makes Europe more reliant on Russian gas. Here's whyThis country is preparing for Russia to cut off its gas supply soonHungarian foreign minister on why the country is still buying Russian energyThree reasons gas prices are expected to stay high'Not acceptable': Biden calls out oil refinery profit margin in letterFact-checking Biden's claim that Putin shares blame for inflationHear why this gas station owner is selling gas at a lossThis is what determines the price of gasOECD secretary-general explains global cost of the Russian oil embargoHow gas prices and inflation could impact midterm electionsHow to save money on gas by being more fuel efficientOil industry consultant: 'Can't drill our way out of' Russian oil banEU reaches deal on Russian oil ban. What will replace it?London (CNN Business)The United Kingdom on Thursday confirmed plans to subsidize energy bills for households and businesses, joining other European governments in a costly race to protect their economies from freezing up this winter as Russia cuts off supplies of gas.
The UK plan could cost as much as £150 billion ($172 billion), the Financial Times reported. Add that to recent similar announcements by Germany, Austria and other EU governments, and Europe's bill for drawing the sting of rising prices is already around €500 billion ($500 billion).Starting in October, the typical UK household will pay no more than £2,500 for their energy for the next two years. "[The] government will also support all business, charities and public sector organizations with their energy costs this winter, offering an equivalent guarantee for six months," UK business and energy minister Jacob Rees-Mogg said in a statement, adding that the overall cost of the intervention would be announced later this month.Britons desperately need the support. Already, the average annual household energy bill has increased by 54% this year to £1,971 ($2,263). Without the new plan to cap prices, bills would have soared above £3,500 in October, and even higher earlier next year. Businesses were facing even greater increases and many had warned they would not survive the winter.Read MoreThis is a developing story and will be updated— Mark Thompson contributed reporting. Click Here To Get Funded!