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In February, the then Chancellor of the Exchequer Rishi Sunak announced that eligible UK households would be offered a £400 discount to help with energy bills from October. However, this month, it was announced that, in January 2023, a new energy price cap will see bills reach as much as £4,266 per year.   

Speaking on BBC Radio 4’s Today programme, Martin Lewis commented, “We’ve heard mutterings from the Rishi Sunak camp that he would increase the previous handouts that were given, but if he were to be consistent he would have to essentially double every number in that package.

“He will effectively need, if he wants to make this work, to double the numbers, especially for the poorest.”

This week, business secretary Kwasi Kwarteng and chancellor Nadhim Zahawai are set to ask energy company executives to submit a breakdown of their expected profits and payouts in an attempt to find an appropriate solution.

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The prime minister said army drivers would be prepared to help deliver fuel to affected petrol stations on a short-term basis amid the crisis. The decision was made on Monday at a meeting of cabinet ministers as the industry said that consumer panic buying  not real shortages of petrol and diesel was the main cause of the problemHowever, despite government warnings of panic buying only worsening the situation, many continue to queue at fuel stations.  

Business secretary Kwasi Kwarteng has said, “The UK continues to have strong supplies of fuel. However, we are aware of supply chain issues at fuel station forecourts and are taking steps to ease these as a matter of priority. If required, the deployment of military personnel will provide the supply chain with additional capacity as a temporary measure to help ease pressures caused by spikes in localised demand for fuel.”

The government has released a joint statement from the fuel industry, announcing that companies expect the problem to ease off within the coming days as many drivers will now have full tanks of fuel.

Kwarteng told MPs that the Government is looking at all options when asked if the UK could adopt Spain’s policy of introducing a new tax on energy companies’ windfall gains. Earlier this week, energy providers Green and Avro collapsed as wholesale costs continue to rocket. 

There is increasing concern that domestic customers across the UK and Europe will now face a winter of surging energy bills as coal, nuclear and gas plants put up their charges in the face of a supply shortfall. 

In Spain, companies that make “excess profits” from rising energy prices will be taxed, with the funds generated to be invested in infrastructure. 

In the UK, there is currently little evidence to suggest that any major power plants are profiting from the rising costs. Kwarteng said: "I'm not a fan of windfall taxes, let me get that straight, but of course, it's an entire system and we have to think about how we can get the energy system as a whole to help itself."

"I think what they’re doing in Spain is recognising that it’s an entire system, the energy system is an entire system. I’m in discussion with Ofgem and other officials, looking at all options."

Kwarteng has warned that the UK has to be ready for energy prices to remain higher over the coming months, with financial expert Martin Lewis warning that up to 30 UK energy firms could go bust. 

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