James Heappey rejects Scottish Power’s proposal to loan energy providers £100 billion so they can freeze rates for two years.
According to a government minister, freezing electricity rates will not benefit those who need assistance with the cost of the living problem the most.
Tuesday, the CEO of Scottish Power disclosed that he had requested the government to support a £100 billion credit program that would allow energy companies to freeze rates for two years.
Keith Anderson stated that Business Secretary Kwasi Kwarteng, who is rumored to become chancellor if Liz Truss wins the Tory leadership battle, is reviewing the plan, which will also be given to Scotland’s First Minister Nicola Sturgeon.
Energy specialists expect that average monthly bills will increase to over £3,500 in October and more than £4,200 in January, prompting homeowners and companies to petition the government for further assistance.
EDF has endorsed Scottish Power’s proposal, with its managing director telling that the industry requires additional government support.
A government source, however, dismissed the notion that Mr. Kwarteng was seriously contemplating the plan, stating, “Scottish Power brought up their proposition in a meeting. It is only the responsibility of the new prime minister to determine how best to assist families during winter.”
Kay Burley, the minister of the Armed Forces, James Heappey, stated that the “eye-popping” number would not be the greatest way to get through a winter of price increases.
He said, “I don’t believe that freezing everyone’s energy bill is a particularly effective way to get government funds into the bank accounts of those who need assistance the most.”
Instead, he stated that both Ms. Truss and her opponent Rishi Sunak had advocated the “better option” of “more targeted packages” of assistance for the poor.
Mr. Heappey added, “Everyone should know that the government of the United Kingdom will assist them with their living expenses.”
“Many things have already been accomplished, but I am confident that the incoming prime minister’s priority will be to ensure that the government does more to assist them during the upcoming extremely expensive winter.”
Not for the first time, a price freeze has been proposed, with Labour proposing to implement one for six months as part of its cost-of-living strategy, at a cost to the Treasury of almost £30 billion.
Both the Liberal Democrats and the SNP are pushing for a freeze on prices and a return of Parliament from its summer holiday to vote on the proposal.
Steve Reed, the shadow justice secretary for Labour, asked Kay Burley, “Where is the government on this Friday, two days before the price ceiling increase?
“Because of this never-ending leadership race, we have a government of walking corpses that does nothing.”
Both Ms. Truss and Mr. Sunak have ruled out a freeze, and the specifics of any targeted assistance they might provide as prime ministers have not been disclosed.
