THE head of Glasgow-based energy firm Scottish Power has tabled a plan with ministers for a £100bn energy prices safety net to freeze bills for two years.

ScottishPower's chief executive Keith Anderson's plan involves creating a deficit fund underwritten by government which would have to be paid back through bills over a ten to 20 year period.

He says the fund would be made up of the difference between what people pay now and how much it actually costs to supply homes with gas and electricity to "help people in the here and now".

He has said the scheme would allow government to buy time over the next two years and speed up investment in cheap green energy.

It comes as energy prices are expected to rise by over 80% from October with multiple analysts predicting the bills cap set by market regulator Ofgem would rise from £1971 to £3600.

Around 1.5m Scots households saw their energy bills rise in April after Ofgem hiked the bills price cap by the biggest increase yet. From April 1, the three in four customers on default tariffs paying by direct debit saw an increase of £693 from £1,277 to £1971. The rest who are on prepayment meters - and tend to be among the most vulnerable - saw a rise of £708 from £1,309 to £2017.

The £100bn was ScottishPower's best estimate of the difference between what it cost to provide energy to consumers and the present price cap.

He has indicated the fund, that he first proposed back in April, could be paid off by the rest of customers who can afford their bills or the government could partially fund it.

He has been pushing the plan UK Business Secretary Kwasi Kwarteng and fellow UK minister Jacob Rees-Mogg.

The Herald:

He was also due to present it to First Minister Nicola Sturgeon at a special summit held today to discuss what can be done to mitigate the impact of soaring energy bills.

Mr Anderson says that once bills have returned to more affordable levels, the price cap should be replaced with a social tariff, ensuring the most vulnerable in society are paying less.

Mr Anderson said action was needed as predictions for future price cap rises were "off the charts".

He said his proposals had been discussed with Mr Kwarteng and he understood they were being "seriously considered" by Conservative ministers.

US bank Citi predicted that that the energy bills price cap would be raised to £4,567 in January and then £5,816 in April, compared with the current level of £1,971 a year.

Mr Anderson said: "I think we've got to a stage now where this is a national crisis, it's of the scale of the pandemic and we need national action.

"The first and most important thing is to protect customers, to stop this price hitting customers' bills.

"And if we can all agree on that, that sends a very powerful message to the UK government."

ScottishPower has been the focus for three protests in recent weeks.

Two weeks ago demonstrators stormed into the energy firm's Glasgow headquarters and demanded a meeting with Mr Anderson.

After "occupying" the building for ten minutes, they left with no arrests made.

Mr Anderson subsequently said that the demonstrations were "peaceful, dignifice and spanning political divides - and all with one message, people urgently need help to get through this".

He added: "I understand that need and I agree wholeheartedly.

"When protestors call for a freeze in the price cap, I can see completely where they’re coming from."

In a blog, he said: "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.

"Unprecedented times call for unprecedented action. And we need action imminently."

A UK government spokesperson said: "We are providing a £400 discount on energy bills this winter, and £1,200 of direct support for the most vulnerable households.

"While no government can control global gas prices, over 22 million households are protected by the price cap which continues to insulate households from even higher prices."