Scottish Power boss tells government to give £1000 to low income households. We can all pay it back later, he advises.

[flashbac]

I think there has to be better ideas than this:

"Scottish Power has proposed that the government underwrites a “deficit fund” that could allow energy suppliers to cut £1,000 off bills for low-income households. The money would be paid down over a decade by adding £40 a year to all household energy bills. It is hoped that bills would come down over time as wholesale market prices fall back towards historic norms.

Anderson said he had presented his plans to MPs but so far not gained traction."

www.theguardian.com/business/2022/may/09/scottish-power-boss-urges-sunak-to-take-swift-action-on-energy-bills-crisis

I don't like that an energy boss, of a company making huge profits from the crisis, is suggesting something like this, and energy companies get away with it.

I've got my smallest violin in the world out.

I’d be interested in this as well. I’m not sure just chucking money at those they consider vulnerable hits the sides really. Peoples finances and situations are complicated.

Martin Lewis has been doing a bit of digging around on who is a band a-d for the council tax, there doesn’t actually seem much logic. we’ve missed out, but our house is genuinely tiny.

Surely this 'bright idea' today is the result of Scottish Power shareholders shitting themselves that Boris might adopt Labour's policy suggestion (as per) of a windfall tax on the energy companies? They've laid the law down to the 'boss' and told him to come up with a plan that means they'd avoid ever having to lose a penny of their immoral, murderous profits (that they get from exploiting our natural resources)

Scottish power won’t be making huge profits, they are a supplier not a producer. As someone said above, suppliers will be shitting themselves about non-payment of bills. It’s the energy producers who are running around at the moment with their pockets bulging with cash. I have no idea why the government thinks without a windfall tax, these companies will direct the money towards investment in order to bring prices down when the current situation brings them the huge profits.

The only thing that is going to bring prices down is if we can somehow substitute our current supply model for alternatives but this is not a short term thing and there seems to be no plan for that. I live in a high density residential area surrounding a park. A district heating scheme would be ideal here but nothing is ever said. DH is an environmental consultant, I think am going to start badgering him to see if he can come up with some ideas. I can’t believe how shit this all is.

This is definitely not the right person to be suggesting solutions. It doesn’t mean that there aren’t issues. If the electric and gas suppliers to individuals or companies don’t get paid then yes they will go under. I wonder whether the ofgem increase took into account that a lot of people may start to run up debts?

We May love to hate large energy companies, especially if the CEOs have big salaries. However if there is no profit there will not be investment either or company closes.

. I think the wholesale ones to energy companies would be making big profits and some are linked.

There seem to be different companies doing well or badly. This is from an article in the independent. It could be argued that the companies have made large profits in the past. How

Scottish Power recorded a £1.4bn operating profit from 2016 to 2020. A spokesperson pointed to a loss in three of the past five years, including £64.3m in 2020, adding that the rise in bills was an Ofgem decision in response to an “unprecedented rise” in the cost of buying energy. Article .Here

Sadly people will continue to vote for the Tory party despite this kind of thing being central to their core ideology.

Fuck that. I’m sorry, we already give enough of our wages to fund other people!

Most people don't have a clue about economics but are allowed to vote. It is frightening the rubbish you read on here.

Most people on here are financially illiterate.

They haven't got a clue.

Are our prisons still overcrowded?
Can we get them producing energy?

well some might welcome a spell inside as a way to guarantee a hot meal and warm accommodation.

Two things the government could do now: reduce tax on energy bills and put a cap on daily charges.

Then think longer term about how to become more self sufficient in energy production - nuclear or renewable fuels.

Yep, no way am I paying an extra £40 per year over a decade, for a loan I don’t even get, to fun others. I’m not a charity.

And this is on top of the other £250 loan we’re all being forced to get and I don’t want.

I suspect he will be getting nervous about unpaid bills and the cost of chasing payment in court screwing with the profit margin.

I agree, they are likely aware that people will just not pay their bills so are trying to ensure they get some money somehow.

Are they saying bills will be high for years then?!

I’m not paying for somebody’s else’s bills we already get taxed to death ,a lot of people know how to play the system!

One thing to do would be to reflect inflation in benefits and pensions now, rather than in a year's time. If they could be more reflexive then they could recoup that money when inflation falls. It just means that people would have the additional money when they need it - not later to pay off debt with it later.

I don't agree with what he's saying.

But let's at least acknowledge that it's an actual plan, so therefore by definition better than anything the government has come up with.

Remember, it was right here on mumsnet that Rishi said it would be "silly" to do anything right now. Because he doesn't know what will happen in the future.

Our government doesn't care about the general public. That's a harsh reality but we need to face it, call it put, and vote them out.

Yes I feel the same. I miss out on the school meal grant by a tiny amount which is pretty much the gateway to hundreds in extra help. Was better off on job seekers than I am working 5 days a week as a result. I feel I'd miss out on this too.

Why on Earth should everyone have £40 added to their energy bills to pay back the £1000 that SOME people get? We’ve just had solar panels fitted to reduce our energy consumption and it’s not our fault that other people can’t afford to have them. I truly feel sorry for people that can’t afford things but we’re not loaded, we just choose to prioritise our money in different ways. We didn’t get furlough and we’re already having to pay that back yet we worked throughout that period. This would be another slap in the face. Some people just have to accept that others have more than them and that’s that.

The middle are going to paying so much tax, and benefits out to others that they themselves will soon be classed as in need!

This is also my main concern. The cliff edge effect.

He's talking about the rise in October. Winter will be a struggle for many. It won't just be 'low income' households defaulting on bills.

There should be a windfall tax on them

That's never going to happen, the middle will continue to be taxed and taxed and taxed and any utterance of a struggle with this will be heavily berated and called evil!

As in the middle will never get to be classified as 'in need' just to be happy with getting to be taxed so hard. Even more so in Scotland!

@FourTeaFallOut I am not sure where that article gets their facts from, but they are wrong. SSE and Ovo are two different companies now. SSE make big profit as they are on the generation side and Ovo are an energy supplier. The profits mentioned are for SSE. Ovo still uses the SSE name, as they bought the customers. Alistair Phillips-Davies is the ceo of SSE and Stephen Fitzpatrick is the CEO of Ovo.