London Daily

Focus on the big picture.
Saturday, Mar 14, 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
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
×