The energy giant supplies electricity and gas to over five million customers. It warned that the rising energy prices would be ‘truly horrible.
Keith Anderson, Scottish Power’s CEO told STV News that energy costs must be frozen now in preparation for a meeting with First Minister Nicola Sturgeon. He will present the same plan he presented to Kwasi Kwarteng, UK business secretary, and Jacob Rees Mogg, UK minister.
On Friday, Ofgem will announce the next energy price limit, which determines the maximum price that suppliers can charge households per unit.
Anderson’s plan would freeze the price cap for two years, while wholesale gas prices will rise.
The difference in prices consumers pay and the cost of providing it would amount to around £100bn.
According to the Scottish Power boss, this would be covered by a UK Government loan that would then be repaid over 15 to 20 years.
The Energy Price Cap on Domestic Bills will go up to £3,000 from Friday. It is currently at £2,000 but is expected to rise to £3,500 by Friday.
Labour wants the price cap to remain frozen for six months. However, Keith Anderson, chief of Scottish Power, believes it should be frozen for at least two years.
This is an indicator of how long the industry expects prices will remain sky-high.
Energy bosses would absorb the large amounts of gas and spread it over ten to twenty years, during which time consumers would be able to pay back their bills or tax.
We will have to repay it no matter what happens.
The Government can borrow money to help families who are struggling to keep up with rising costs. This will need to be repaid.
The UK Government is refusing to make big political decisions right now, which is the biggest political problem.
Boris Johnson will be prime minister for two more weeks, and then it looks likely Liz Truss will assume control.
The Conservative frontrunner for leadership has so far been reluctant to commit to anything beyond cutting taxes and vague promises of more assistance to the poorest in paying their bills.
Now is the time for large Government intervention. It must be at the UK Government level.
It is more than just helping families with their domestic energy bills. Small and medium-sized businesses need support too. Otherwise, companies will fail and jobs will disappear.
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