Energy industry calls for state-backed crisis fund to avert huge rises in household bills

’Deficit tariff’ plan piles pressure on ministers to end silence on rocketing autumn bills

The energy industry has piled pressure on the government to end its silence on rocketing bills, calling for a crisis fund to block the looming huge increases.

The chancellor, Nadhim Zahawi, is urged to embrace the idea of a “deficit tariff scheme”, to allow the pain to be spread over 10 to 15 years, in a letter from the Energy UK group.

It argues the state-backed fund would allow customers to pay back the cost through a surcharge on bills or through tax – potentially freezing the price cap for two years.