Energy bosses warn households will struggle this winter ahead of 28 October Budget

Mixed · 2Two senior figures in the energy sector warned on 14 October that households face a hard winter, ahead of the Budget on 28 October. 1 2 Left · 1Keith Anderson, chief executive of Scottish Power, said many households were already "seriously struggling" before a "bad" price rise in January. He said the most vulnerable people needed further support this winter, and that the government would need to consider emergency help in the Budget. 1 Centre · 1Ofgem's new chief executive, Tim Jarvis, told the Energy UK conference in London that "it's going to be a difficult winter" because of what is happening to wholesale prices as a result of the Middle East situation. 2

Centre · 1Jarvis said decisions on help lie with government and that he would not make "unreasonable demands", but that he shared concerns that "people are going to struggle this winter without some help". He said the sooner decisions are made, the sooner the sector can help implement them. 2 Mixed · 2A 4% rise in Ofgem's price cap took effect on 1 October. Cornwall Insight forecasts a further 16% rise to £1,999 a year on 1 January, up £276 on the October to December level and the biggest rise since January 2023. The Mirror attributes the forecast surge to an energy shock caused by the Middle East war. 2 1 Left · 1Anderson also focused on customer debt owed to suppliers, which the Mirror says stands at £6bn and is heading towards £7bn. He called it "one of the biggest challenges facing the industry" and said he was "more worried than I have ever been" about suppliers' sustainability. 1

Left · 1He argued for separating customers who "can't pay" from those who "choose not to pay". He told the Mirror that 35% to 40% of the debt is owed by tenants who leave before suppliers can bill them, and suggested giving new tenants a few days to register with a supplier. He also floated bundling up to £4bn of debt, to be sold on and recovered from billpayers over 10 years or longer. 1 Left · 1The Mirror reports expectations that Chancellor John Healey will announce targeted help rather than support for all households. The most likely option is extending the £150 Warm Home Discount to more people on means-tested benefits, and another is extending the temporary VAT cut on electricity, worth £45 a year. Energy UK chief executive Dhara Vyas said failing to act risks greater long-term costs. 1 Centre · 1Campaigners want broader action. The End Fuel Poverty Coalition has urged ministers to prepare an "emergency heat tariff", noting gas prices are up 27% year on year. A Uswitch poll suggests 1.7 million households will not turn on their heating this winter, and 52% are worried about being cold. 2