Liz Truss to freeze energy bills at £2,500 a year average, funded by borrowing

PM announces 150bn scheme and resumption of fracking as she pledges to tackle root causes of crisis

• Liz Truss's energy bailout: key points at a glance

Liz Truss will freeze energy bills at an average of 2,500 a year for two years from 1 October, and has pledged to tackle the root causes of the issues in the UK energy market through plans to increase supply, including the resumption of fracking.

The government will fund the scheme to reduce the unit cost of energy through increased borrowing. The cost is likely to be about 150bn, although Whitehall sources said estimates would not come until a fiscal statement from the chancellor, Kwasi Kwarteng, expected later this month.