The energy sector would support a price cap freeze to ease record household bills this winter, argued Utilita Energy chair Derek Lickorish.
Newly-announced Prime Minister Liz Truss is expected to bring in a wide range of support measures for households in the face of record energy bills, with multiple reports suggesting she is edging towards a price cape freeze and a loan scheme for suppliers.
Lickorish told the BBC: “If we don’t the economy is going to crash and consumers won’t know where to turn to for help.”
The price cap will climb 80 per cent to an eye-watering £3,549 per year in October, with Cornwall Insight predicting a painful peak of £6,616 per year next April.
Energy bills were already at an all-time high of £1,971 per year following the collapse of nearly 30 suppliers post-pandemic.
Lickorish revealed that Utilita and other industry bosses had been calling for a freeze to the energy price cap “for some time”.
ScottishPower boss Keith Anderson first proposed a loan scheme to hold prices for households in April, while EDF Energy revealed to City A.M. its proposal for a price cap freeze combined with the £15bn support package unveiled by former Chancellor Rishi Sunak earlier this year.
Multiple firms are understood to supportive of a price cap freeze, including Octopus Energy, Ovo Energy, and EON UK.
Utilita has seen a 140 per cent spike in phone calls from concerned customers, reflecting the level of anxiety across UK households.
Lickorish concluded: “We recognise its going to be very expensive but if we don’t the economy is going to crash and consumers won’t know what to do, they won’t know where to turn to for help.”