The energy giant, which supplies gas and electricity to more than five million customers, has warned that the impending jump in energy prices will be “truly horrific” for many people. Keith Anderson, chief executive of Scottish Power, told STV News that energy costs must be frozen “now” ahead of a meeting with First Minister Nicola Sturgeon, where he will put forward the same plan he presented to his business secretary of the United Kingdom Kwasi Kwarteng and the fellow minister of the United Kingdom. Jacob Rees-Mogg. Ofgem will officially announce the next energy price cap, which sets the maximum price suppliers can charge households per unit, on Friday. Under Mr. Anderson’s plan, the price cap would be frozen for two years while wholesale gas prices are expected to rise. The difference between the prices charged to consumers and the cost of supply will amount to around £100bn. The Scottish Power boss’ proposal would cover this UK Government loan, which would then be repaid over the next 15 to 20 years. Government meetings with energy chiefs seem to have generated more heat than light so far. but then heat and light are going to cost a lot more. From Friday the energy price cap on domestic bills is set to rise from just under £2,000 to more than £3,500 and is set to rise further. Labor is calling for the price cap to be frozen for six months, but Scottish Power boss Keith Anderson believes it should be frozen for two years. This is an indication of how long the industry expects prices to be high. Energy bosses’ plans would absorb high natural gas emissions by spreading them over ten to 20 years during which consumers would pay for them through their bills or taxes. Whatever happens we will have to pay for it. If the government borrows money to support families struggling with rising costs, then it should be paid back. If the Scottish Government agrees to increase the Scottish Children’s Payment, for example, it will have to come from somewhere in its budget, meaning it cannot be spent on other schemes. The UK government has already pledged to help the families, but since then the scale of the problem has escalated. The biggest political problem at the moment is that the UK government won’t make big decisions. Boris Johnson is only Prime Minister for another two weeks and then it looks very likely that Liz Truss will take over. So far, the Conservative leadership frontrunner has been unwilling to commit to much more than a tax cut and a vague promise of more help for the poorest with their bills. What is needed now is big government intervention, and it needs to be done at UK government level. And it’s not just helping with domestic energy bills to stop families suffering. There must be support for small and medium-sized enterprises, otherwise companies will collapse and jobs will be lost. On Tuesday, the First Minister’s message to power companies will be: “Do something”. Last week, the message from the power companies to the Prime Minister was: “Do something”. The message to all of them is to do something and do it soon because warm words will not provide warm homes this winter.
