Labour's Shadow Secretary of State for Climate Change Ed Miliband says that although he would welcome a freeze on energy bills, there is a crucial question about who pays for it.

"We know from the Treasury that there are £170bn of excess profits being made by the energy companies. We believe a windfall tax must be part of the solution to that, that is the fair thing to do, that is the right thing to do," he tells the BBC.

Prime Minister Liz Truss's government is expected to borrow money in order to pay for the energy price cap.

"I am afraid that Liz Truss is making a terrible mistake by setting her face against that, because in the end, higher borrowing will have to be paid for somehow and it will end up falling back on the British people, and she's leaving money on the table that these companies are making," Miliband says.

Liz Truss unveiling her plan for lowering gas and electricity bills this winter leads most of the papers.

"About time" is the headline in the Daily Mirror - which says the intervention cannot come soon enough for struggling families, pensioners and businesses.

For the Guardian, it's a "make or break moment" , externalfor Truss's entire premiership, as the new prime minister fights to unite her party.

The i newspaper thinks the scheme is a "gamble", external- with questions mounting about how the £150bn package will be paid for.

The Daily Mail , externalsays Truss will scrap the moratorium on fracking in a written statement to Parliament rather than full legislation - speeding up the removal of the ban.

The Times reports , externalthat ministers are drawing up plans for a public information campaign to encourage households to reduce their energy use this winter.

See today's newspaper headlines here.

Image source, Reuters

Liz Truss promised to announce a plan to deal with soaring energy costs within a week of becoming prime minister.

She also pledged to set out an emergency budget that would get the economy growing in order to fund public services and the NHS.

But she repeatedly ruled out imposing a further windfall tax on energy firms’ profits.

She said she would act immediately to help with bills but did not provide details beyond vowing to cut taxes.

Kevin Peachey
Personal finance correspondent

The price cap is a limit on how much domestic customers in England, Wales and Scotland pay for each unit of gas and electricity, and on how much they can be charged for being connected to the grid (the standing charge).

It is set by the regulator Ofgem based on how much energy firms are having to pay for gas and electricity.

It applies only to providers’ standard and default tariffs, which most people are on. There is a separate cap for prepayment meter customers.

Ofgem illustrates the cap with the annual bill for a household using a typical amount of gas and electricity.

At present that is £1,971 a year (or £2,017 for prepayment meter). Any household that uses a lot of energy will pay more, or if they use a little will pay less.

It is not a cap on the total bill. There is no cap in Northern Ireland, owing to different regulation.

Good morning and welcome to our live coverage of the cost of energy crisis.

Later today, new Prime Minister Liz Truss is set to unveil a massive package of support to help people and businesses with soaring energy prices, which threaten to plunge tens of millions of households into fuel poverty.

While Truss’s government has not yet publicly revealed the extent of the help being offered, it’s expected that a typical bill in England, Scotland and Wales could be capped at around £2,500.

It’s unclear how long the support will last, but the sums are eyewatering - the government is expected to borrow at least £100bn to pay for it.

Stay with us as we bring you the latest updates, announcements and reaction.