PROPOSALS by Scottish Power to freeze energy prices for two years are set to be examined by the UK Government, the Chancellor has said.
Nadhim Zahawi told Sky News “there’s nothing off the table” in terms of options the government is assessing to deal with soaring costs.
The includes looking into an idea put forward by Scottish Power for the government to act as guarantor to £100 billion in bank loans to allow energy companies to take the burden of rising wholesale costs while freezing bills for two years.
Zahawi said: “There's nothing off the table. We are looking at all the options.
"Everything from the chief executive of Scottish Power talking about help where we need to maybe create some sort of a fund for companies to be able to continue to help their customers, all the way through to making sure we target the help to both households and small and medium-size businesses and probably some larger businesses.
“One of my concerns is the scarring effect on the economy if perfectly viable businesses in hospitality, in leisure, in high-energy use businesses would actually suffer or no longer exist because of Putin's use of energy as a weapon."
Zahawi promised there would be additional help for families struggling to put food on the table because of rocketing bills, but he stood by the Downing Street line that it will be up to the new prime minister – which will be announced on Monday - to decide what that support looks like.
The founder of gas and electricity supplier Ovo has also outlined proposals calling on the Government to provide help with bills that would offer the most support to the poorest families.
Stephen Fitzpatrick has put forward a 10-point action plan to deal with the energy crisis, which would see support taper off for high earners using more electricity.
Under the plan, every household would get some help towards bills, but with low-income families being prioritised in a similar way to how the tax-free allowance works.
He is also urging the Government to bring forward support measures, saying the £400 help towards bills – and up to another £650 for those on qualifying benefits – should be made in full before Christmas.
Zahawi also said the Government has looked at "the pledges being made by the different candidates" in the leadership contest.
He added: "Liz Truss has pledged to have a moratorium on the green levies. It's certainly is something that I think will help everyone, it's about £150 of additional help, so we've worked up those options."
