The CEO of one of the country's biggest energy suppliers has said the price cap increase will be "truly catastrophic" for millions of people. The price cap is set to rise to £3,549 for the average household from October.
The increase is an 80% rise on the current cap. Under the cap, the average yearly bill is currently £1,971.
Scottish Power chief executive Keith Anderson said that people now need to hear what support will be provided to them by the government. In a statement, he said: “The size and scale of this issue is truly catastrophic for UK households and that’s why only a big solution can tackle it once and for all to shelter people from the worst this winter.
“We have offered Government a plan, backed by the industry, that can be delivered this year, tailored in line with their priorities and will support the UK economy – with the cap set at £3,549, what billpayers need now is to hear what additional help is coming.”
The cap will come into effect for about 24 million households in England, Scotland and Wales on default energy tariffs on October 1. It will remain in place until December 31, when it will be adjusted again.
Scotland’s Energy Secretary Michael Matheson said the increase is “unsustainable” and warned it would push millions into fuel poverty. Meanwhile, First Minister Nicola Sturgeon said the rise should not be allowed to happen.
Chancellor Nadhim Zahawi said the Government is working to develop more options to support households. He said: “I know the energy price cap announcement this morning will cause stress and anxiety for many people, but help is coming with £400 off energy bills for all, the second instalment of a £650 payment for vulnerable households, and £300 for all pensioners.”
A UK Government spokesperson said: “We know people are incredibly worried about rising energy bills, following unprecedented gas prices across the continent driven by global events, including Putin’s aggression in Ukraine and his weaponisation of energy in Europe. Direct support will continue to reach people’s pockets in the weeks and months ahead, targeted at those who need it most like low-income households, pensioners and those with disabilities.
"As part of our £37bn package of help for households, one in four of all UK households will see £1,200 extra support, provided in instalments across the year, and everyone will receive a £400 discount on their energy bills over winter. The civil service is also making the appropriate preparations in order to ensure that any additional support or commitments on cost of living can be delivered as quickly as possible when the new Prime Minister is in place.”
