Energy bills set to rise by another £1,000 this winter, energy boss warns

The boss of one of the UK’s biggest energy firms has warned that energy bills could rise by another £1,000 this winter unless the government takes ‘immediate action’. 

The chief executive of Scottish Power Keith Anderson has said a fresh support package from the government would be ‘vital’ before the cost of gas and electricity increases again in October.

Scottish Power forecasts the price cap could reach as high as £2,900 this winter, putting further pressure on families after the energy price cap rose by a record 54% last month.

Ahead of this, Anderson has said ‘immediate action’ is necessary to help the industry make preparations and to support families.

Speaking to BBC Breakfast this morning, he said: “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.

“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.”

Anderson also pointed out that more energy companies could collapse if their customers were unable to pay their bills. 

He explained: “We need to find a way to help to those that need it in time for winter in a way that doesn’t exacerbate the issues we’ve already seen in the industry with supplier failures and very real concerns about bill payers running up unsustainable debts.”

The government has been under intense scrutiny for its response to the energy crisis, which includes a one-off £150 council tax rebate and a £200 energy bill ‘loan’, which will then have to be paid back over five annual £40 payments.

However, even with the energy price cap poised to raise yet again this year, Rishi Sunak recently said now is not the time to provide more support for those continuing to struggle with the rising costs.