Scottish Power CEO warns that rising gas prices could push energy bills to around £ 3,000 in October
Scottish Power CEO Keith Anderson told the Daily Mail on Monday that the family’s fuel bill could reach £ 2,900 ($ 3,576) by October, given the skyrocketing gas prices in the wake of the Ukraine conflict and Western sanctions on Russia. With around 10 million UK homes potentially unable to be heated, Anderson called on the government to set up a support project.
British households have already seen their energy costs – including electricity and heating – rise by £ 700 between October and April and this growth is expected to accelerate, Anderson warned.
“It’s incredibly hard and will hit immediately,” Anderson said his company supplies electricity to parts of Scotland, England and Wales. “If nothing else happens by October, I think we’ll see a huge increase in pre-payment customers that will effectively self-disconnect – their pre-payment meters won’t be reloaded because they can’t.”
“We will also see a huge increase in the level of debt for direct debit customers, and a huge increase in people from direct debit to prepayment meters so that companies can recover the debt.” He continued. “We’re going to a really scary place where we don’t want anyone to be.”
Although Scottish Power owns and operates two wind farms, much of the UK’s energy comes from oil, gas and coal. Only one-fifth of the country’s energy comes from low-carbon sources, including wind, solar and nuclear.
Anderson has blamed rising household prices for rising global gas prices due to the conflict in Ukraine. The United Kingdom has also voluntarily disassociated itself from Russia’s oil and gas imports, and European leaders are gradually working toward a cutoff from Russian power.
The power boss called on lawmakers to set up a support project for struggling families. Consumers have already received a £ 150 ($ 185) council tax rebate this month and will receive a £ 200 ($ 246) loan in October. However, “Consumer groups and industry leaders” The Daily Mail quoted him as saying it would not be enough “Protect millions from being confronted with a choice between heating and eating.”
Some have already looked for alternative sources of heat with catastrophic results The London Fire Brigade (LFB) said on Monday that its officials had responded to fires in 100 homes, including open fireplaces, log burners and heaters, in recent months. “The brigade fears that the costly energy bill could lead to more fires as people resort to alternative ways to heat their homes.” The LFB warned in a statement.
In addition to energy, food, clothing and transportation costs have risen across the UK, and the Bank of England warned last week that inflation would soon hit 10%. Andy Haldane, the bank’s former chief economist, told LBC Radio on Monday that the number was likely to rise and that inflation was on the rise. “The end of the year, and the next or more years.”
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