An emergency plan to protect UK households from rising energy bills will cost more than £100 billion over two years.
That’s according to Keith Anderson, chief executive of energy giant Scottish Power, which has proposed capping household energy bills at around £2,000 a year.
Under their plans, bills would be frozen for two years at the current price cap of £1,971. Suppliers would cover the gap between the cap and wholesale prices by borrowing from the so-called deficit fund organized by the Government.
The public would pay for it through taxes, spread over bills over the next 10 to 15 years or a combination of the two, the Financial Times reports.
Anderson raised the plans in a meeting with Business Secretary Kwasi Kwarteng last week.
Liz Truss, leader of the Conservative leadership, has acknowledged that more support could be needed with the energy bills, but has railed against the “handouts”.