London Daily

Focus on the big picture.
Thursday, Sep 11, 2025

Scottish Power boss urges Sunak to take swift action on energy bills crisis

Scottish Power boss urges Sunak to take swift action on energy bills crisis

Keith Anderson says fresh support package is vital before households hit by further increases in October

The boss of one of Britain’s biggest energy suppliers has warned Rishi Sunak that further government help with the cost of living crisis must be announced as soon as possible to avoid an autumn emergency for struggling families.

Keith Anderson, the chief executive of Scottish Power, said a fresh support package would be vital before a further dramatic increase in the cost of gas and electricity bills due in October, as Russia’s war in Ukraine drives up energy costs to eye-watering levels.

The government energy regulator, Ofgem, is due to announce how much its consumer energy price cap is due to go up in August, before the new limit takes effect from October for households in Great Britain. Scottish Power forecasts the price cap could reach as high as £2,900, putting further pressure on families after last month’s record increase from £1,277 to £1,971.

Warning that the government’s existing plan to deal with the increase in energy costs exacerbated by Vladimir Putin’s war fell significantly short of requirements, Anderson said immediate action was necessary to help the industry make preparations and to support families.

“You need to be in a position to name a solution in July if there’s going to be time to devise a method of implementing it in time for October. It will be monumentally complicated. The key thing here is urgency and speed,” he said.

Critics have accused Sunak of failing to act as Britain threatens to tip into recession amid rampant inflation fuelled by soaring energy bills, high petrol prices and the rising cost of the weekly shop.

Sunak announced plans in February to give 28 million households a £200 upfront discount on their bills in October, which is then to be repaid over five years. However, Anderson said progress in devising how to implement the scheme had been slow and the initiative came “nowhere near” offering enough help for struggling households.

“Our view is clearly now this £200 is not going to be anywhere near enough,” he said.

The intervention comes as fears grow of an economic slump triggered by soaring living costs. Analysts from the EY Item Club said Britain’s economy faced the “serious risk” of falling into recession later this year because consumers suffering a sharp rise in their bills would cut back on other forms of spending.

Keith Anderson, the chief executive of Scottish Power.


Martin Beck, the chief economic adviser to the forecasting group, said: “There is a significant risk that consumers, faced with a sustained squeeze on their finances, may cut spending in response. And while the rising cost of living will affect almost all households, some are more vulnerable than others.”

The Bank of England said on Thursday that the risks of a recession were growing, and that inflation could peak above 10% later this year because of the expected further increase in gas and electricity bills.

Scottish Power has proposed that the government underwrites a “deficit fund” that could allow energy suppliers to cut £1,000 off bills for low-income households. The money would be paid down over a decade by adding £40 a year to all household energy bills. It is hoped that bills would come down over time as wholesale market prices fall back towards historic norms.

Anderson said he had presented his plans to MPs but so far not gained traction.

“If you wait until October to help people, you end up having to rush through a very blunt solution that probably doesn’t tackle the problem,” he said.

Martin Young, a senior energy analyst at Investec, said: “If nothing is done, people’s energy bills will more than double on last year in October. If the government doesn’t intervene and people have to chose between heating or eating there will be consequences for the health service. It makes sense to get on the front foot and act now.”

Anderson said the government would need to identify consumers who could be helped with their bills. Those who currently receive universal credit or the warm home discount could be targeted but a far larger cohort of households are expected to be pushed into fuel poverty by rising bills if nothing is done to help with the cost.

A government spokesperson said: “We recognise the pressures people are facing with the cost of living, which is why we have set out a £22bn 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 £500m household support fund and the warm home discount, with the energy price cap continuing to insulate millions of families from high global gas prices.”

Newsletter

Related Articles

0:00
0:00
Close
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
Generations Born After 1939 Unlikely to Reach Age One Hundred, New Study Finds
End to a four-year manhunt in New Zealand: the father who abducted his children to the forests was killed, the three siblings were found
Germany Suspends Debt Rules, Funnels €500 Billion Toward Military and Proxy War Strategy
EU Prepares for War
BMW Eyes Growth in China with New All‑Electric Neue Klasse Lineup
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
US Justice Department Launches Criminal Mortgage-Fraud Probe into Federal Reserve Governor Lisa Cook
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
US and Taiwanese Defence Officials Held Secret Talks in Alaska
Report: Secret SEAL Team 6 Mission in North Korea Ordered by Trump in 2019 Ended in Failure
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Florida Murder Case: The Adelson Family, the Killing of Dan Markel, and the Trial of Donna Adelson
×