Two of Scotland’s top entrepreneurs have urged both industry and government to use their power to help combat the energy crisis, following comments by Keith Anderson, chief executive of Glasgow-based ScottishPower, who said the situation is beyond what the sector can deal with right now.
Speaking on the Go Radio Business Show with Hunter & Haughey, Lord Willie Haughey said: “It was interesting watching Keith saying what he said in front of the Department of Business, Energy and Industrial Strategy select committee. I’d like to ask him a question: why is it the people who need help the most, the people who have pay meters, pay more?
“I don’t understand that because you’re getting paid instantaneously by them. I’d have thought their bills should be less. It’s outrageous.
“It did sound very philanthropic that he was asking for the government to help and I think they’ll have to help. They’ll have to find a formula in the next few weeks because people will certainly need help.
“However the energy companies could be in there with solutions. Keith, you came on very concerned about the people at the bottom, which I totally agree with. So why don’t you just pledge you will not cut off anybody’s utilities during the next two years and give them a bit of comfort?”
Sir Tom Hunter told the show’s host, Donald Martin, editor of The Herald and Herald on Sunday: “I know Keith and he knows his stuff about energy. But we have an energy crisis and there are really only two bodies that can do something about it. One is the government and the other are the energy companies themselves.
“I was reading in The Herald Keith was asking the energy cap be taken off and those who couldn’t afford their bills be given a thousand pounds off and allowed 10 years to pay it up.
“I also think it’s a good point to ask why prepaid meter cards are more expensive. The people with the broadest shoulders should carry the most burden and yet it always falls on the poor souls who cannot afford it to pay the most. It’s ridiculous.”
Sir Tom pointed out Mr Anderson had noted in the past week ScottishPower had received 8,000 phone calls with people asking what they could do to help pay their bills.
“He talked about a social tariff. That sounds good. Maybe the government chips in, maybe the energy companies chip in.”
Commenting on the Select Committee statements, Lord Haughey said he believed Mr Anderson was trying to frighten the life out of politicians. He was right to do that because the energy crisis is something people here have never seen in the way hardship has affected everyone, not only the people who are really struggling. For middle-income families now it’s not just energy, it’s food, it’s fuel, it’s everything. We have the perfect storm here.
“I think the energy companies need to do more than come up and say, oh, here’s how you can manage to get us paid. The energy companies should certainly do their bit.”
Mr Martin pointed out Centrica, the UK’s biggest gas supplier, have seen a rise of 125,000 households in debt already and believe that number will climb. He asked Sir Tom and Lord Haughey what could be done for people who cannot pay their bills.
Sir Tom said: “No bona fide person should be cut off. That’s a starting point and the companies can do that tomorrow. The energy crisis is transitory. Prices won’t stay at these levels for more than 12 to 18 months. Therefore we need to help people through this and allow, say, £1,000 to be paid up over 10 years. That sounds like a decent solution to me.”
Lord Haughey agreed the crisis is short-term, adding: “It’s not going to last forever so if you have 10 years to pay up, I think you could get over it.”
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