Sturgeon tells UK Government not to wait for new PM to act on energy bills

The Scottish First Minister insists there is ‘no time to wait for the outcome of a Tory leadership election’.

First Minister Nicola Sturgeon said there was a consensus at the summit for action on ‘a much larger scale’ from the UK Government.

Action to tackle soaring energy bills cannot wait until after a new prime minister is elected, Nicola Sturgeon said, as she called on the UK Government to intervene on a “much larger scale”.

With Chancellor Nadhim Zahawi expected in Scotland on Wednesday, the First Minster urged him to call a halt on looming energy rises.

There have been warnings that the average amount UK households pay for their gas and electricity could reach £6,000 next year, while the energy price cap – which limits the amount domestic customers have to pay – is expected to rise to more than £3,500 from October, with an announcement due on Friday.

Speaking after a special summit, which brought together some of the main energy companies with consumer organisations and others, Ms Sturgeon issued another call for action.

She said: “There is no time to wait for the outcome of a Tory leadership election.

“If the Chancellor wants to give good news to people in Scotland and good news to people across the UK tomorrow, then say that the next increase in energy bills is not going to go ahead, and give some relief to people who are desperately worried about what lies ahead.”

Boris Johnson’s successor will be confirmed on September 5, when either Liz Truss or Rishi Sunak emerges as the victor in the Tory leadership race, with the formal handover of power due to take place the following day.

Ms Sturgeon spoke out after talks at Bute House in Edinburgh involving representatives from Scottish Power, OVO Energy and E.on, as well as groups such as the Poverty Alliance and Energy Action Scotland.

She said discussions “focused on the mitigations that can be taken to try to help people who are impacted most, giving people more advice and support” as well as the issue of how to avoid people being cut off from gas or electricity supplies this winter.

But she said there was a “consensus” amongst those involved that “the UK Government needs to intervene at a much larger scale given the nature and the scale of the crisis that is looming ahead of us”.

“Effectively, we’re calling for an energy bills freeze, and then an arrangement to be put in place to fund that over a much longer period of time to alleviate the pressure on individuals, to bear down on inflation and the parallel to reform the energy market to avoid situations like this in future,” she said.

Keith Anderson, CEO of Scottish Power, was in Bute House for the talks. (Lesley Martin/PA)

Scottish Power chief executive Keith Anderson had earlier called for bills to be frozen at the current level – saying the cost of doing this could be repaid over a period of 15 to 20 years.

He said “bold” action is needed to bring down bills, telling BBC Radio Scotland: “I think we’ve got to a stage now where this is a national crisis. It’s of the scale of the pandemic and we need national action.”

Mr Anderson said his proposals had been discussed with Business Secretary Kwasi Kwarteng and he understood they were being “seriously considered” by the Government.

Poverty Alliance director Peter Kelly said after the meeting there was a “moral duty” to act.

He said: “The situation we face is of a magnitude that requires a pandemic-level response. Energy companies, as well as every level of government, have a moral duty to act.

“Today’s summit was a constructive start, with all those attending recognising the scale and urgency of the response needed. ”

A UK Government spokesman said: “We are providing a £400 discount on energy bills this winter and £1,200 of direct support for the most vulnerable households.

“While no Government can control global gas prices, over 22 million households are protected by the price cap, which continues to insulate households from even higher prices.”