# UK energy CEOs urge government action on ‘horrific’ price surge Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-04-19 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: UK Energy CEOs Demand Government Action as Prices Surge for Meta Description: CEOs from top energy suppliers urge government intervention to alleviate soaring prices before peak winter demand. Will October bring relief? URL: https://financedigest.com/uk-energy-ceos-urge-government-action-on-horrific-price-surgehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-04-19t122756z2lynxnpei3i0g7rtroptp4britain-energy-meters-1736815866894-compressed.jpg) By Susanna Twidale LONDON (Reuters) -CEOs from four of Britain’s leading energy suppliers called for more government action to cushion the impact of prices that are expected to surge in October ahead of peak winter demand. Power and gas prices for millions of households rose 54% from April after regulator Ofgem increased its cap on the most widely used tariffs following record wholesale global gas prices. Since the new cap was set, global gas prices have risen further, following [Russia’s invasion of Ukraine](https://www.financedigest.com/analysis-action-wanes-at-u-n-to-isolate-russia-almost-six-months-into-ukraine-war.html "Analysis: Action wanes at U.N. to isolate Russia almost six months into Ukraine war"). Analysts at Cornwall Insight predict the next cap level, which comes into effect in October, could [rise by another 30% to more than 2,600 pounds](https://www.financedigest.com/dollar-slips-after-upbeat-china-data-euro-pound-rise.html "Dollar slips after upbeat China data; euro, pound rise") a year. My biggest concern is when we get to October, come October that’s going to be horrific, truly horrific,” Keith Anderson, [CEO of Iberdrola-owned Scottish Power](https://www.financedigest.com/ceo-riggs-eckelberry-of-originclear-discusses-the-power-of-intuition-in-running-a-successful-business.html "CEO Riggs Eckelberry of OriginClear Discusses the Power of Intuition in Running a Successful Business ") told a cross-party committee of lawmakers. It [needs a massive shift in government approach.”](https://www.financedigest.com/why-a-modern-organisation-needs-an-agile-approach-to-software-asset-management.html "Why a modern organisation needs an agile approach to software asset management") Thinktank The Resolution Foundation said the number of households in England spending at least 10% of their budget on energy bills, a share deemed to represent “fuel stress”, doubled to 5 [million following](https://www.financedigest.com/10-million-to-be-whipped-into-ice-cream-brand-four-winters-following-acquisition.html " Million To Be Whipped Into Ice Cream Brand Four Winters Following Acquisition ") the April rise. The government in February launched measures, including a 200 pound ($261) discount on electricity [bills for all households](https://www.financedigest.com/44-of-uk-households-are-worried-theyll-have-to-foot-the-bill-for-net-zero.html "44% of UK Households are Worried They’ll Have to Foot the Bill for Net Zero"), from October to be repaid over five years. The situation has changed significantly for the worse so I would [expect the government to reassess,” Simon Rossi CEO](https://www.financedigest.com/fineco-ceo-expects-fixed-income-demand-to-help-managed-assets.html "Fineco CEO expects fixed income demand to help managed assets") of EDF’s UK arm said. E.ON UK CEO Michael Lewis said the predicted increase in October could [mean some 30%-40% of British](https://www.financedigest.com/what-brexit-mean-for-british-buyers-in-spain.html "WHAT BREXIT MEAN FOR BRITISH BUYERS IN SPAIN") households have difficulty paying bills and British Gas owner Centrica’s CEO Chris O’Shea also said the situation would get worse in October without further government intervention. Anderson suggested the government could set up a social fund to subsidise [energy for the most vulnerable, while Lewis said the government could cut tax on energy bills](https://www.financedigest.com/energy-bill-support-pushes-uk-budget-deficit-to-february-record.html "Energy bill support pushes UK budget deficit to February record"), increase the 200 pound rebate and extend the repayment period. A government spokesperson said it has already announced a package of support worth 22 [billion pounds](https://www.financedigest.com/shell-to-evaluate-25-billion-pound-british-investments-after-windfall-tax.html "Shell to ‘evaluate’ 25 billion pound British investments after windfall tax"). It [expanded its warm home scheme to include more households and increased it by 10 pounds](https://www.financedigest.com/incentive-qas-expands-retail-portfolio-with-million-pound-shopping-centre-contract.html "Incentive QAS Expands Retail Portfolio With Million Pound Shopping Centre Contract"), or 7%, to 150 pounds a year. The energy price cap also continues to insulate [millions of households from even higher global](https://www.financedigest.com/black-panther-sequel-ignites-box-office-with-330-million-global-debut.html "‘Black Panther’ sequel ignites box office with 0 million global debut") gas prices,” the spokesperson said. Britain’s main opposition Labour Party in January urged the government to impose a windfall [tax on producers of North Sea oil and gas to fund](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds") help for people struggling with energy bills. The [record prices](https://www.financedigest.com/tesla-posts-record-quarterly-deliveries-after-price-cuts-up-4-from-q4.html "Tesla posts record quarterly deliveries after price cuts, up 4% from Q4") have meant big profits for energy producers, while some supply companies have been squeezed and many smaller companies went bust last year. Centrica, however, reported a [doubling in profit](https://www.financedigest.com/big-oil-doubles-profits-in-blockbuster-2022.html "Big Oil doubles profits in blockbuster 2022") for 2021 as it took on customers following the collapse of rivals. ($1 = 0.7673 pounds) (Reporting By Susanna Twidale; editing by Barbara Lewis) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---