Peston: Power bosses say rich must pay most for energy

Energy bosses have told MPs they want radical reform of energy regulation and pricing, with the introduction of a “social tariff” so that what they see as the scandal of the poorest - those on prepayment meters - paying most per unit of energy would be ended, and the richest would pay most.

This overhaul would take too long to help during this acute phase of the cost of living crisis, whose “size and scale is beyond what the industry can deal with”, said Keith Anderson, boss of Scottish Power.

He wants the government to order £1,000 deductions from the bills of millions in fuel poverty in October, with the multi-billion pound cost put into a pot and paid off by richer customers through their bills over ten years.

In the short and long term, energy bosses argue that those with the deepest pockets should subsidise the poorest.

Will the government take up this approach? Should it?

PS, bosses of Centrica, EDF, E.On and Scottish Power - the biggest suppliers - all said October would be “horrific” for customers, with tariffs and consumption all set to soar.

They were unanimous Chancellor Rishi Sunak would have to do more to help.

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