More action on energy bills needed by July – ScottishPower boss

Scottish Power boss says energy bills are likely to go up by nearly another £1000 households next winter

Keith Anderson, of ScottishPower, said that energy bills are likely to go up by nearly another £1000 for millions of households around the country next winter.

“Given what’s going to happen in October, we think that urgent action is required to put in place a mechanism to support customers through this period,” he said.

“You require a sum of about £1000 to start bringing bills back closer not to where they used to be, but closer to where it’s realistic to expect people to be able to pay them.”

He called for “targeted” support for the most vulnerable customers. This could be for customers with pre-payment meters, those on Universal Credit, or those eligible for the warm home discount.

He said the Government’s plan to give each household £200 towards their energy bill – a sum that will need to be paid back – will be insufficient.

“This will take time to implement, and it will take time to agree on the exact format of it … that all needs to be debated, signed, sealed, delivered, designed and agreed by July to allow it to be implemented by October.”

He said there are several different ways for the £1000 to be funded. It could for instance be added to all household energy bills over the next decade.

Bills for the average household whose tariff is tied to the energy price cap rose to £1971 on April 1 after the price of gas soared over previous months.

It forced the Government to promise the £200 rebate on energy bills from October and also knock £150 off council tax for many households.

ScottishPower believes this might go to £2900 on October 1. Mr Anderson said that it will still be some time before predictions are truly accurate.

However “we see no evidence in the form of prices to suggest right now that’s going to change,” he said.

A Government spokesman said: “We recognise the pressures people are facing with the cost of living, which is why we have set out a £22 billion package of support, including rebates and energy bill reductions. We also urge energy companies to support their customers as we manage the impact of high global gas prices.

“We are also supporting vulnerable households through initiatives such as the £500 million Household Support Fund and the Warm Home Discount, with the Energy Price Cap continuing to insulate millions of families from high global gas prices.”

One comment

  1. Super profits for the utility companies with BP last week announcing a doubling of profits for the first three months of the year.

    And Scottish and Southern Energy a company that suggested that old people should dance to stay warm, and a company who is building all its offshore Scottish wind towers in Dubai and China the race for corporate profits knows no bounds. But high jumps aside you have to laugh at the hapless population who put up with this. Cold houses, or choosing between heating or eating, these too many Scottish people’s birth right. You’d cry if you didn’t laugh. It is that grim.

    And then you look at Queen Nicola who only some three or four years ago announced the plan to create a National Energy company. Gone by the wayside now, one wonders why. Better that the corporates make money perchance. Its the rationale of the Tories in Westminster writ large in the Scottish Government.

    But to come back to it, this is all about people’s choicesm and they have chosen what they are being given

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