The chief executive of Scottish Power, Keith Anderson, has urged the UK government to double its support for households as energy bills rise 'off the charts'. He warned that people are experiencing 'genuine fear' about their ability to pay, with the situation set to worsen significantly in the coming months.
Consultancy Cornwall Insight has forecast that energy bills for a typical household could reach £4,266 next year. The UK government has already announced £37bn of support, including £400 for all households and up to £1,200 for the most vulnerable. However, Anderson said this is insufficient, noting that concern is turning into 'genuine fear' ahead of the next price cap increase in October.
Anderson's comments follow a meeting with Prime Minister Boris Johnson and other cabinet members, which appeared unfruitful. The government has stated it will not make major decisions until a new prime minister is installed. Both leadership candidates, Rishi Sunak and Liz Truss, have ruled out extending the windfall tax on energy company profits, while Labour leader Sir Keir Starmer has pledged that families would 'not pay a penny more' under his plans, funded by higher taxes on oil and gas profits.
Drawing parallels to the pandemic, Anderson suggested the government could create a deficit fund to cover the difference between what households pay and the actual cost of supply. This fund would be repaid over 10-15 years, allowing time to accelerate investment in green energy and improve energy efficiency. 'We can use the time to speed up investment in cheap green energy, to cut energy use and emissions,' he said.
Ofgem is set to announce the latest price cap on 26 August, with changes taking effect from 1 October. A protest against rising costs was held outside Scottish Power's Glasgow headquarters on Friday.
