Rishi Sunak has been urged to take £1,000 off the bills of the poorest consumers in the country by the head of one of the biggest power companies.
Scottish Power chief executive Keith Anderson called on the chancellor to reduce rocketing bills this winter and to get rid of pre-payment meters as people face poverty over power bills.
Anderson told MPs on the Commons Business, Energy and Industrial Strategy Committee that the £1,000 advance could be paid off over ten years or written off by the government.
Sunak has already offered a £200 loan to help pay for bills since the price cap was raised in April and £150 discount for many households.
But with the minimum price due to rise again in October energy company bosses lined up to tell MPs that more needed to be done.
EDF chief executive Simone Rossi described how his company had recorded a 40 per cent increase in calls from customers concerned about their debt.
E.ON boss Michael Lewis added: "Clearly the price increase we've seen on the first of April was unprecedented, I've never seen anything like it my 30 years in the industry. We are expecting a severe impact on customers ability to pay."
Anderson told MPs: “I’m hugely concerned for people.So many people are going to struggle with this issue. We’re seeing there were 8,000 calls last week from customers concerned with their ability to pay, and that’s just the first few weeks after this price increase.”
He said it is “perverse” that customers with prepayment meters - who are likely to be more vulnerable - pay more for their energy than those who pay by direct debit."
Ian Murray MP, Labour’s Shadow Scottish Secretary, said the evidence from energy bosses confirmed what Labour had been demanding for months.
He said: “Mr Anderson’s evidence backs up what Scottish Labour have been saying in black and white for months- we need a £1000 plan to tackle the cost of living crisis.”
“Scottish Power’s evidence today was a damning indictment both the UK and Scottish Government’s record on the cost of living. Mr Anderson’s comments confirm that Scottish Labour’s plan - which could save over £1000 for struggling households - is the right way to tackle the cost of living crisis head on.”
Murray added: “For four in ten of us facing fuel poverty in October, it is time for the SNP to stop pretending they can’t do anything to help and get to work. Scottish Labour are the only party with a plan to tackle the cost of living crisis.”
Three million people have expressed their fear falling into debt within the next three months as the Government fails to help struggling households, a poll revealed.
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