London Daily

Focus on the big picture.
Tuesday, Sep 22, 2026

E.On UK boss warns 40% of customers face fuel poverty

E.On UK boss warns 40% of customers face fuel poverty

One of the UK's biggest energy suppliers has warned that up to 40% of its customers will be in fuel poverty by October as it called on the government to help struggling homes.

E.On UK boss Michael Lewis said the rise in energy prices is "unprecedented" and a growing number of its customers are in arrears.

The government is facing calls to levy a windfall tax on oil and gas firms.

Education Secretary Nadhim Zahawi said Rishi Sunak will look at all options.

"We will review everything," he told the BBC, adding: "We've got £22bn in the next 12 months of help to those people who need it the most."

However, Mr Lewis said around one in eight of its customers were already struggling to pay their bills, even before the weather turns colder and the new energy price cap comes into force in October, which is expected to rise significantly.

"We do need more intervention in October and it has to be very substantial," he told the BBC's Sunday Programme.

A household is considered to be in fuel poverty if it has to spend 10% or more of its disposable income on energy.

E.On UK boss Michael Lewis said energy price rises are "unprecedented"


Mr Lewis said around a fifth of its customers were already in fuel poverty but that is expected to rise significantly later this year.

Energy regulator Ofgem lifted the price cap on gas and electricity bills in April, adding around £700 to the average household energy bill to take it to £1,971.

For the 4.5 million people on pre-payment meters - which are typically used by people on lower incomes - the price of energy has now risen further, by an average £708, to £2,017 a year.

Due to the rising cost of wholesale gas, however, the price cap is expected to increase and take the typical energy bill to as much as £2,800, if not higher.

"In my 30 years in the energy industry I've never ever seen prices increasing at this rate," said Mr Lewis.

Following the rise of gas and electricity prices in April, the UK's inflation rate reached a 40-year high of 9%.

He declined to comment on whether the government should impose a windfall tax on companies benefitting from the sharp rise in crude oil and wholesale gas prices which has been exacerbated by Russia's invasion of Ukraine.

But Mr Lewis said it is important the government taxes "those with the broadest shoulders".

Recently, Shell reported a record £7bn profit in the first three months of this year while BP made £5bn, the highest for 10 years.


Analysis

By Simon Browning, BBC business correspondent

"Intervene".

The word could be heard clearly four times during Mr Lewis' interview this morning.

He used it repeatedly, not holding back on his request that the government must now step in and help energy customers facing huge bills.

The chief executive of a huge energy firm admitting that the "scale is too big for us to manage at the moment" was a direct signal to Downing Street for help.

Mr Lewis made suggestions on what policy tools he believed were at the disposal of government to help his customers, 20% of whom he said are now in fuel poverty, a figure that's expected to double.

The pressure continues to build on the Treasury for solutions to the cost of living crisis, to help people who are really struggling. This candour from the top of business will only add to that.

A windfall tax has been backed by Labour, the SNP and Liberal Democrats.

Prime Minister Boris Johnson is reluctant to introduce a tax over concerns it could hit energy firms' investments in the UK. But the Sunday Times reported that the chancellor is considering implementing the levy.

Mr Sunak recently told the BBC that he is "not naturally attracted by the idea of" a windfall tax.

"But what I do know is these companies are making a significant amount of profit at the moment because of these very elevated prices."

Mr Sunak said that he wants to see "significant investment back into the UK economy to support jobs, to support energy security".

"And if that doesn't happen, then no options are off the table," he said.

Mr Lewis suggested that the government could substantially increase the size and scope of the Warm Homes Discount scheme.

It offers those in receipt of certain benefits the option to seek a one-off £140 payment.

Mr Lewis said the scheme "works well" but told the BBC "the scale of this is simply too big for us to manage at the moment".

"If we were to expand the scope from three million to six million customers and increase the payment from £140 up to £600 that would make a very, very big difference to those customers on lower incomes."

A Treasury spokesperson said "while we can't shield everyone from the global challenges we face, we're supporting British families to navigate the months ahead with a £22 billion package of support.

"The chancellor has been clear that as the situation evolves, our response will evolve - and we stand ready to do more."

Mr Lewis claimed energy providers were limited in the help they can give customers because gas and electricity prices are set by energy regulator Ofgem.

Ofgem chief executive Jonathan Brearley appears before MPs on Tuesday to answer questions about pricing.

Newsletter

Related Articles

0:00
0:00
Close
Andy Burnham Reaffirms UK Net-Zero Target With £30 Million Community Energy Fund
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
UK Consumer Confidence Falls to Three-Year Low
UK Diesel Prices Approach £2 a Litre as Global Supply Shortages Intensify
Chiltern Railways Returns to Public Ownership as UK Rail Nationalisation Advances
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
Ed Sheeran Tour Faces Backlash After Macklemore Is Removed Over Pro-Palestinian Remarks
Vandalism of Traffic Cameras Intensifies Across Parts of England
Nearly 300 Evacuated as Fire Hits Grand Burstin Hotel in Folkestone
King Charles Warns AI Executives About Risks From Uncontrolled Technology
Church of England Apologises for Role in Historical Forced Adoption Practices
UK Debate Over Online Speech Intensifies After Arrest Figures Draw Scrutiny
Oxfordshire Village Holds Symbolic Independence Vote Over Asylum Accommodation Plan
Nigel Farage and Richard Tice Sue National Crime Agency Over Alleged Banking Data Leaks
Apple Introduces Stricter Age Checks for UK Accounts
BBC Cash Reserves Fall 66% to £125 Million as Broadcaster Restructures
McLaren Announces £500 Million UK Investment and Plans 1,000 Jobs
Green Party Wins Historic Gorton and Denton By-Election as Labour Falls to Third
Burnham Government Prepares October Budget Under Growing Fiscal Pressure
UK Energy Suppliers Pull Fixed-Price Deals as Wholesale Markets Turn More Volatile
Bank of England Holds Rates at 3.75% as Middle East Energy Shock Raises Inflation Risks
Addison Lee Founder Loses £20 Million UK Tax Tribunal Case
BrewDog Creditors Face Losses on About £190 Million of Debt
Harrods Seeks to Recover Abuse Compensation Costs From Mohamed Al Fayed’s Estate
Ed Davey Targets Reform UK as Liberal Democrat Conference Opens
Great Britain Retail Sales Rise 0.5% in August
NHS England Approves Life-Extending Treatment for Incurable Breast Cancer
Proposals to Limit NHS ADHD Diagnoses Draw Criticism From Patient Groups
Resolution Foundation Warns of Housing Cost Crunch for Low-Income UK Families
BBC Cash Reserves Fall to Decade Low as Annual Deficit Reaches £121 Million
Millisecond Software Error Triggered Major UK Air Traffic Control Disruption
Twenty Women Underwent Unnecessary Mastectomies During NHS Cancer Care
Sensitive UK Police Data Found Vulnerable to Access by Foreign Actors
British Steel Faces Renewed Pressure for a Long-Term Financial Plan
MPs Urge Government to End Thames Water Restructuring Talks With U.S. Hedge Funds
Andy Burnham Warns of Difficult UK Budget Choices as Inflation Returns to 3.1%
×