Scottish Power’s boss revealed on Tuesday that he has asked the government to back a £100bn loan scheme to allow energy companies to freeze bills for two years. Keith Anderson said the plan is being considered by Business Minister Kwasi Kwarteng – who is tipped to become chancellor if Liz Truss wins the Tory leadership contest – and will also be presented to Scottish First Minister Nicola Sturgeon. Politics Hub: Truss promises budget event as Sunak warns of ‘impoverishment’ Energy analysts have predicted that typical bills could rise to around £3,500 in October and above £4,200 in January, leading to calls from households and businesses for additional help from the government. Scottish Power’s proposal has won the support of EDF, with its chief executive telling Sky News the industry needs more support from the government. But a government source played down the idea that Mr Kwarteng was seriously considering the idea, saying: “Scottish Power put their proposal to a meeting. It is entirely up to the new Prime Minister to decide how best to support families this winter.” Asked about the plan by Sky News’ Kay Burley, Defense Secretary James Hippey said the “staggering” amount would not be the best way to face a winter of price rises. “I don’t think a blanket freeze on everyone’s energy bills really helps get taxpayers’ money into the bank accounts of the people who need support the most,” he added. Instead, he said both Ms Truss and her rival Rishi Sunak had proposed the “better solution” of “more targeted packages” of support for the less well-off. “What everyone needs to know … is that the UK Government is going to help them with the cost of living,” Mr Heappey added. “There is a lot that has already been done, but I know it will be the first priority of the new prime minister to make sure the government does more to help them get through the very expensive winter ahead.” Image: James Heappey says the cost of living is being tackled by the government It is not the first time a price freeze has been proposed, with Labor proposing to introduce it for six months as a major part of the cost of living plan, costing the Treasury around £30bn. Both the Lib Dems and the SNP are also calling for a price freeze and echoing calls from the party to bring Parliament back early from its summer recess to vote on the plan. Labour’s shadow justice secretary, Steve Reed, told Kay Burley: “The price cap increase is this Friday, just two days away, so where is the government? “We have a zombie government that does nothing because this endless leadership contest goes on and on.” Both Ms Truss and Mr Sunak have ruled out a freeze and details of any targeted support they would offer as prime minister have yet to be revealed.
