London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

UK should expect high fuel bills for at least 18 months, E.ON boss says

UK should expect high fuel bills for at least 18 months, E.ON boss says

Michael Lewis calls for substanstial government intervention to help people deal with costs
Consumers will have to cope with extraordinarily high fuel bills for at least another 18 months, the boss of Britain’s biggest energy supplier has said.

Michael Lewis, the chief executive of E.ON UK, called for “very substantial” government intervention to help people with escalating fuel bills, one of the biggest factors in the cost-of-living crisis.

Bills could reach £3,000 when the price cap lifts in October, he said, when people would also need more gas and electricity to heat their homes.

Lewis said E.ON expected almost one in five customers to struggle to pay their bills in the autumn, when price rises were “baked in”. He said 1m of E.ON’s 8m accounts were already in arrears and the firm forecast a 50% rise in October.

About 40% of people were likely to be in fuel poverty, meaning more than 10% of their disposable income would be needed to pay fuel bills, he said.

Speaking on the BBC Sunday Morning show, Lewis said: “I read emails from customers regularly, I listen in on calls, and frankly, some people are at the edge. They simply cannot pay and that will get worse.”

He said the huge increase in the cost of gas, which also drove up the price of electricity generation, was predominantly down to the Russian invasion of Ukraine. The price cap for consumer bills had a record rise last month from £1,277 to £1,971 a year and is expected to rise to at least £2,600 in October.

Lewis said: “It’s a very, very significant impact and that’s why we’ve called upon the government to take more action. We do need more intervention in October and it has to be very substantial.”

Double the number of households should be given the warm homes discount, and the rebate should go up from £140 to £600, he suggested, urging the government to “tax those with the broadest shoulders”.

He said: “I think for the next 18 months we’re likely to see higher prices. That’s already baked in, certainly in October and probably into next year as well. I think the longer-term development depends on what happens in the war in Ukraine [and] how Russian gas flows will develop.”

The E.ON boss said the drive to net zero was “the long-term way to get off gas, to get off international gas prices and to drive down costs over the long term”.

Labour renewed its calls for a windfall tax on North Sea oil and gas producers. Rachel Reeves, the shadow chancellor, said Lewis’s comments “underline how tough the cost-of-living crisis is for families, and how Conservative delays will see the situation get even worse.

“The government must act now, by bringing in a windfall tax on oil and gas producer profits to cut bills.”

Ministers said that they would consider such a tax among other options, although many have played down the idea. Asked directly about a windfall tax on Sunday, Nadhim Zahawi, the education secretary, told Sky News: “We will look at all the options.”
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×