One of the biggest energy companies in the UK, ScottishPower, has proposed a plan in which the private sector will subsidise electricity and gas bills from April 2023 when the government support ends.

A few days ago, Chancellor Jeremy Hunt said the Energy Price Guarantee for households and the Energy Bill Relief Scheme for businesses would end as it would be “irresponsible” for the government to “continue exposing the public finances to unlimited volatility in international gas prices”.

As experts warn that energy bills are set to top £4,000 in April, ScottishPower Chief Executive Keith Anderson suggests all energy companies, including oil and gas producers, should pay into a fund that would help people and businesses go through the period of high energy prices.

Mr Anderson told the Financial Times: “There’s a need for all of us… oil and gas companies, upstream companies and every generator to sit in a room with the government and talk about how we contribute to (a) fund.”

Keith Anderson explained this fund, which would be part-funded by public money, could replace other “rushed policies”, including the revenue cap on renewable energy generators. This proposal has already received fierce criticism from companies. 

A government spokesperson told ELN: “We are protecting people from high energy bills caused by Putin’s devastating invasion of Ukraine.

“We have taken decisive actions to hold down bills this winter through the Energy Price Guarantee, on top of that, the Energy Bills Support Scheme is an additional £400 discount.

“A Treasury-led review will consider how to support households from April 2023, focusing support for those in need while reducing costs for the taxpayer.”

ELN approached ScottishPower – the company did not respond before publication.