Energy boss calls for £1,000 bill cut
Keith Anderson, the CEO of the ‘Big Six’ energy provider, proposed a £10bn ‘deficit fund’ which would allow energy suppliers to cut £1,000 off bills for households on low incomes.
All households would see a £40 increase to their energy bills over the next decade to cover the cost.
It comes after the boss said households could face average bills of between £2,500 and £3,000 in October – the next time that the regulator, Ofgem, sets the energy price cap.
Millions of households have already seen energy costs soar as the price cap was set in April, taking average bills from £1,277 to £1,971.
Anderson told the BBC: “We need to be realistic about the gravity of the situation – around 40% of UK households, potentially 10 million homes, could be in fuel poverty this winter.”
He added that the government’s £150 council tax rebate and £200 discount to be repaid by households wouldn’t be enough to help those on the lowest incomes.
Further, it requires a number of organisations and the government to help.
Anderson, said: “We’re a big company, we can survive and we can get through this.
“But what we’re saying is, with the rises we’re seeing and the price going to that level, we can’t do this on our own. I can’t help customers on my own … deal with this price, and deal with, in effect for a period over 18 months… a 200% increase on their energy bill.
“That requires the government, the regulator and the industry all to work together to help sort this out.”
The proposals have been presented to MPs, but Anderson said they had yet to receive traction.