Ministers to ‘knock some heads together’ in energy crisis talks
CRISIS talks to “knock some heads together” will take place between energy sector bosses and the Government after the price cap was forecast to hit more than £4,200 in January.
Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng will ask gas and electricity company executives to submit a breakdown of expected profits and payouts as well as investment plans for the next three years.
Education Secretary James Cleverly confirmed today’s meeting as he sought to downplay concerns over energy blackouts this winter.
The Cabinet minister said the UK is in a “better position than many” when it comes to domestic energy production but cautioned: “It’s not going to be easy, but we are resilient.”
Leaked Government documents have warned a “reasonable worst-case scenario” could see outages for homes and businesses in January if there is a combination of below-average temperatures and a drop in gas imports, according to reports.
In a new dire outlook for households, Cornwall Insight said bills are set to soar to around £3,582 in October, from £1,971 previously, before rising even further in the new year.
There has been widespread anger at Shell, BP and British Gas owner Centrica announcing bumper financial results while households struggle with soaring bills.
Mr Cleverly told ITV’S Good Morning Britain (GMB): “The Chancellor of the Exchequer and the Business Secretary are actually calling in the leaders of those big energy companies to knock some heads together and basically hold them to account about what they’re going to do with those profits.”
Mr Zahawi, speaking to reporters during a visit to Belfast, said the Treasury has been preparing “options” for the next prime minister on what further support could be given to people this winter.
On the meeting with energy bosses, he added: “What I want to do tomorrow is understand better how they’re committed to that investment in gas, because whatever happens we need energy security and we’ve got a strong strategy that Kwasi and I will continue to push hard.
“The other area I want to look at is some of the energy producers, if you look at the renewable energy producers, the amount that they get paid is linked to gas prices.
“So, they haven’t changed anything they’re doing, they haven’t had any increase in their input costs at all, but they’re getting a much higher return because of the unusually high gas price because of Putin.”