There is fear in the eyes of energy bosses. They have just told MPs that customers concerned about being able to pay their bills have made calls on an unprecedented scale. The bosses were being questioned by the business, energy and industrial strategy committee – mainly about how they were managing more widely with the growing crisis of energy prices.
As most people have read in recent weeks – the energy bill of a typical household rose by around £690, or 54 per cent, to £1,971 a year from April 1. Ofgem was forced to increase the energy price cap as global demand and geopolitical events have forced prices to surge.
But worse is yet to come. The Office for Budget Responsibility has now made a forecast and stated that energy bills will rise to something like £2,800 a year from this October, when the price cap is reviewed again – and just as the weather heads into winter. One energy company even started giving electric blankets to vulnerable customers.
Keith Anderson of Scottish Power told MPs that his company had received 8,000 calls from customers just last week alone, concerned about their ability to pay bills. Anderson went on to say October would be “horrific” for the most vulnerable. In an ominous warning, he said – “I honestly believe the size and scale of this is beyond what I can deal with and what the industry can deal with.” He called for a significant shift in government policy, by proposing a deficit fund to take £1,000 off bills for the most vulnerable this October, and a gradual move to a social tariff.
The bosses of EDF and Centrica agreed with Anderson and added that the present energy security strategy had failed to address immediate problems for customers, saying that the planning system was too slow and homeowners needed incentives to make homes more energy-efficient to reduce demand.