Energy bosses have been “hauled in” before government to discuss what they are going to do with their rising profits as household bills soar, the education secretary has told Sky News.
James Cleverly said Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng are to meet with leaders of energy companies as calls grow for more to be done to ease the cost of living crisis.
He told Sky News: “The chancellor and the business secretary have hauled in the leaders of the energy companies to hold them to account, to discuss with them what they are going to do with these unexpected, unplanned, unprecedented profits that they have been making because of that sudden spike in energy prices caused by Russia’s invasion of Ukraine.”
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Mr Cleverly also failed to deny there could be blackouts this winter, but did say the UK was in a “better position than many in terms of our domestic energy production”.
It follows reports in The Sun that energy sector bosses will take part in crisis talks with ministers tomorrow, after the price cap was forecast to hit more than £4,200 in January.
The newspaper reported gas and electricity executives will meet with the cabinet ministers on Thursday morning, when the bosses will be asked to submit a breakdown of expected profits and payouts as well as investment plans for the next three years.
There has been widespread anger at Shell, BP, and British Gas owner Centrica announcing bumper financial results while households struggle to cope with soaring bills.
Earlier on Sky News Conservative MP Theresa Villiers, who is a supporter of Rishi Sunak in the leadership race, hinted the former chancellor may increase levies on energy companies.
She said: “[Mr Sunak has] already been responsible for additional taxation on the big oil companies, and I’m sure looking at these matters to see if the oil and energy companies can contribute more.”
James Cleverly
Millions of UK homes already in debt
Millions of UK homes are already in debt over their energy bills – with £1.3 billion owed, even before bills are set to soar by more than 80%, according to analysts at Uswitch,
Regulator Ofgem is expected to raise the price cap on energy bills to £3,582 per year for the average household in Great Britain from the beginning of October, according to a new forecast.
Analysts at Cornwall Insight have predicted further rises, to £4,266 in January and then £4,427 from the start of April.
Calls have been growing for Boris Johnson, Liz Truss and Rishi Sunak to hold emergency talks to thrash out a new financial package of measures before the Tory leadership contest is over.
But last night Ms Truss branded that proposal a “kangaroo committee” and ruled out widespread cash handouts to deal with the crisis as “Gordon Brown economics”.
Mr Brown has been leading the charge for further action after a report he commissioned found families are £1,600 worse off due to the cost of living crisis, even after government help is taken into account.
The former Labour prime minister has suggested calling daily emergency COBRA meetings and put forward solutions including capping energy bills, reforming the welfare system, and changing the current Windfall tax to extract more money out of oil and gas firms. .
But Mr Cleverly, who is backing Ms Truss in the leadership race, said today that the ex-PM “should know better” than demanding a recall of parliament “so all these problems go away”.
He said: “It is much more complicated and therefore the government answer needs to be a more comprehensive answer than just come back for an emergency debate in the summer.”
He said the government’s ultimate aim was to bring energy costs down but that this will take “international effort as well as domestic politics”.
He also defended the windfall tax following criticism the carve-outs included to help businesses reduced its value, saying: “The decisions that were made at the time were the right decisions.”
‘Bury your differences’
The meeting with energy firms comes after Downing Street faced a backlash for ruling out new measures, saying that was a task for the next PM.
On Tuesday Money Saving Expert’s Martin Lewis called on the two contenders to bury their differences to tackle the problem together, warning the country was facing a “national cataclysm”.
He said the “zombie government needs to wake up sooner than 5 September”, when the new Tory leader and prime minister will be announced, as the new bill predictions are “unaffordable for millions”.
Rishi Sunak has promised to give “hundreds of pounds” more to people for energy bills while Liz Truss refused to commit to extra support for struggling families yesterday.
Ms Truss has insisted her priority was driving through tax cuts to kick-start the economy and would “see what the situation is like” in the autumn.
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