ScottishPower chief says energy bills support for families must double

He called on the Government to double the support packa ges that it put into place in May this year – which promised £400 for all households and up to £1,200 for the most vulnerable.

“People’s concern about how they’re going to make ends meet when the price cap goes up at the start of October is palpable, and turning to genuine fear,” Mr Anderson said.

He warned that the “tough conditions for UK households are going to get much, much worse before they get better – and are going to endure for longer than any of us could have expected”.

The call comes days after energy bosses – including Mr Anderson – met with Prime Minister Boris Johnson and other Cabinet members to discuss the crisis.

Seventy charities and community organisations have signed an open letter to Tory leadership challangers Liz Truss and Rishi Sunak warning families on benefits face a £1,600 shortfall over the coming months, despite receiving £1,200 in the last Government support package.

In the letter, co-ordinated by the Joseph Rowntree Foundation (JRF), they warn soaring energy bills mean many low-income households are already facing in a choice between skipping meals or not heating their homes properly, and that the situation is only set to get worse.

“Many of our organisations work directly with these families and are becoming overwhelmed, too often unable to provide the support so desperately needed,” the letter said.

The representative body for the UK offshore energy industry has called on government to prioritise domestic oil and gas production of energy to prevent even higher bills.

A House of Commons briefing has showed that in June 2022, the UK imported no oil, gas or coal imports from Russia.

It said that, according to UK trade statistics this was “the third month in a row with no Russian gas imports.

It was also the first month since 2000, when data was available, with no gas, oil or coal imports from Russia.”

According to Offshore Energies, UK production of oil and gas in UK waters continues to decline, with industry now meeting half of domestic gas needs and the equivalent of more than 80 percent of oil.

It has warned that offshore wind is still too small to be able to replace the declines in oil and gas output from the North Sea.

The Offshore Energies UK trade association has warned that global efforts to remove Russia’s oil and gas will cause "supply and therefore price implications for years to come", calling for a long term energy strategy which recognises that 85% of UK households rely on gas for heating.

OEUK, formerly Oil & Gas UK (OGUK), in a March analysis warned that the the UK will have to import almost all its gas and most of its oil from overseas suppliers unless billions of pounds are ploughed into new North Seas exploration and production facilities.

It said that without new investment around 80% of UK gas supplies and more than 70% of oil will have to be sourced abroad by 2030.

Although there are enough oil and gas reserves to support the UK for at least 15 years, it says there has been too little investment in the platforms, pipelines and other infrastructure needed to access it, said OEUK.

OEUK energy policy manager Will Webster said: “Consumers are all too aware of the impact cutting Russian supplies has had on the global price of oil and gas, and the reality is these effects will be here to stay for at least the medium term.

“This is why the UK must prioritise energy produced here. Today gas heats 85% of UK homes so in the short and medium-term, governments must support oil and gas in UK waters and carefully manage already declining production levels. "At the same time, these same companies are also building the energy system of the future including expanding renewables to meet more of the UK’s electricity needs, while also developing hydrogen and carbon capture which could play a role in domestic heating and industrial power. We are seeing the reality of how complicated the transition to a lower carbon energy future will be, with a clear need to manage supply and demand as a whole and not in isolation.

"The transition is a necessity, which is why we continue to emphasise the need for consensus on a long term and comprehensive energy strategy which prioritises production of energy in the UK and accelerates the transition for industries and consumers.”

The call came as energy companies are reporting increases in profit, including BP announcing, last week, profits of £6.9 billion in just one quarter this year, as Russia's invasion of Ukraine has seen oil and gas prices skyrocket.

Saudi oil giant Aramco has just broken its own record with a £29.8bn profit for the second quarter of 2022.

It is a 90% year-on-year increase and marks the biggest earnings for the world's largest energy exporter since its public listing three years ago.

Russia is one of the world's biggest exporters but Western nations have pledged to curb their dependence on the country for their energy needs.

Former chancellor and Tory leadership challenger Rishi Sunak has set out plans to make Britain "energy secure" - including boosting North Seas production.

The former chancellor said he would legislate to make the UK “energy independent” by 2045 at the latest as he vowed to ensure there is no repeat of the looming winter crisis.

He outlined his plans as Labour leader Sir Keir Starmer called for the energy price cap to be frozen at £1,971 – blocking an expected increase to £3,300 in October as his party aimed to end energy "injustice".

Mr Sunak confirmed that if he becomes prime minister on September 5, he would put in place immediate support for households – particularly the most vulnerable – faced with soaring energy bills.

Mr Sunak's challenger Liz Truss, who has previously said she is opposed to to further “handouts”, has insisted that she has not ruled out additional direct payments, although her priority is tax cuts which, she argues, are needed to kickstart economic growth.

The calls come after analysts warned the average UK annual household energy bill cap set by energy market regulator Ofgem could top £5,000 by next spring as the war in Ukraine continues to drive up the cost of oil and gas.

The Herald on Sunday revealed that in parts of Scotland, where energy use is higher, bills could soar to over £7,500 a year this January - the equivalent of over three-and-half months take home pay for the average Scot.

Boris Johnson's meeting with energy bosses last week appeared unfruitful, with the Government saying it would not make any major decisions until the new prime minister is installed early next month.

This week three “peaceful, dignified” groups “spanning political divides” protested at the ScottishPower offices and Mr Anderson said: “All with one message. People urgently need help to get through this.”

He added: “We should look to the lessons of the pandemic to offer support on the size and scale needed to see households through the worst of the pain this winter and over the course of the next two years.

“Alongside other support measures, the Government could set up a deficit fund to cover the difference between what people pay and how much it costs to supply their homes with gas and electricity.

“The fund could be underwritten by the Government, or a willing financial institution, and repaid over a 10 to 15-year period to smoothe out the costs.

“We can use the time to speed up investment in cheap green energy, to cut energy use and emissions by more ambitious energy efficiency programmes, and to make progress in delinking electricity prices from gas, to better reflect the use of cheaper green energy in our mix.

“Britain has rightly stood up for Ukraine, standing united with those in need and we must continue to do. But we must also support people here during these unprecedented times."

Mr Sunak’s plans to boost North Sea gas production and to allow fracking were condemned by climate change campaigners.

Greenpeace UK’s policy director, Doug Parr, said: “Has Rishi Sunak just been sat under an air conditioning unit all day?

“Despite the searing temperatures and drought declared by his own Government, his plans for energy independence have completely ignored the fact that we’re also grappling with a climate crisis.

“Someone should also remind him that his Government has already made a legally binding commitment to cut emissions to zero by 2050.”

Meanwhile a new survey has found that most people support public ownership of crucial utilities such as energy and water.

Campaign group We Own It said its survey of 4,300 adults showed overwhelming backing for public ownership, even among Conservative voters.

More than three out of five members of the public, and a similar number of Conservatives, wanted to see the utilities in public ownership, said the report.

Cat Hobbs, director of We Own It, said “Privatisation has failed for nearly 40 years. Politicians can’t ignore the truth any longer – these monopolies are a cash cow for shareholders around the world and we need to take them back.

“We need energy companies that don’t rip us off, public transport that works for passengers, water companies that don’t pour sewage into our rivers."