The chief of Glasgow-based energy company ScottishPower has warned of another major energy bill increase next winter as he called for the Government to take urgent action.
Keith Anderson said bills could go up by nearly another £1000 for millions of households around the UK.
“Given what’s going to happen in October, we think that urgent action is required to put in place a mechanism to support customers through this period,” he said.
“You require a sum of about £1,000 to start bringing bills back closer not to where they used to be, but closer to where it’s realistic to expect people to be able to pay them.”
Mr Anderson said current support from the Government was "not going to be anywhere near enough" to support households.
The Herald previously reported that the energy boss wants to see more government intervention to support the most vulnerable through the "truly horrific" cost of living crisis.
He also called for the energy cap to be scrapped and replaced with a social tariff to ease the price hikes for those in fuel poverty.
Now speaking on Government plans to give each household £200 towards their energy bill, he said: “This will take time to implement, and it will take time to agree on the exact format of it … that all needs to be debated, signed, sealed, delivered, designed and agreed by July to allow it to be implemented by October.”
He said there are several different ways for the £1,000 to be funded. It could for instance be added to all household energy bills over the next decade.
Bills for the average household whose tariff is tied to the energy price cap rose to £1,971 on April 1 after the price of gas soared over previous months.
It forced the Government to promise the £200 rebate on energy bills from October and also knock £150 off council tax for many households.
But many campaigners have warned that this will not be enough, especially next winter if the price cap goes up again, which is widely expected.
ScottishPower believes this might go to £2,900 on October 1. Mr Anderson said that it will still be some time before predictions are truly accurate.
However “we see no evidence in the form of prices to suggest right now that’s going to change,” he said.
READ MORE: Give most vulnerable £1000 off bills says ScottishPower chief
A Government spokesman said: “We recognise the pressures people are facing with the cost of living, which is why we have set out a £22 billion package of support, including rebates and energy bill reductions. We also urge energy companies to support their customers as we manage the impact of high global gas prices.
“We are also supporting vulnerable households through initiatives such as the £500m Household Support Fund and the Warm Home Discount, with the Energy Price Cap continuing to insulate millions of families from high global gas prices.”
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