Chancellor Nadhim Zahawi is coming under pressure over the cost of living crisis
(Picture: PA)Energy companies were warned on Wednesday that the Government is closely watching their unprecedented profits as ministers come under growing pressure to do more to help ease the growing cost of living crisis.
The warning came ahead of a “roundtable” meeting tomorrow between Chancellor Nadhim Zahawi, Business Secretary Kwasi Kwarteng and the bosses of the UK’s energy suppliers to discuss ways of alleviating the financial squeeze on millions this winter.
With the Government ruling out any fresh support package until a new prime minister is in office in September, ministers and the two Tory leadership contenders Liz Truss and Rishi Sunak are facing calls to do more now to offer financial support to families.
Energy market experts Cornwall Insight yesterday upgraded their forecasts for average annual energy bills, predicting they could now rise to more than £3,500 in October and over £4,200 in January.
Amid reports that the Government could look again at the 25 per cent windfall tax which was imposed on energy companies by the ex-chancellor in May, a government spokesperson said: “We are engaging with the electricity sector to drive forward reforms and to ensure the market delivers better results for people across the UK.
“In the meantime, the Government continues to evaluate the extraordinary profits seen in certain parts of the electricity generation sector and the appropriate and proportionate steps to take.”
There has been widespread anger at Shell, BP and British Gas owner Centrica announcing bumper financial results while households struggle with soaring bills. Education Secretary James Cleverly said Mr Zahawi and Mr Kwarteng would “knock some heads together” when they meet energy bosses tomorrow and “hold them to account” for the profits as gas and oil prices surge, partly due to the war in Ukraine.
News of the meeting came as a survey showed British consumer energy debt is already at an all-time high with six million households owing an average of £206 to providers.
