Energy bosses summoned to No10 for crisis talks as Martin Lewis slams 'zombie Govt'
10 August 2022, 11:11 | Updated: 10 August 2022, 16:41
- Figures show households already owe £1.3bn to their energy suppliers two months before bills are set to soar by 80%
- Crisis talks are set to take place between energy bosses and the Govt as energy bills are set to hit more than £4,200 in January
- Martin Lewis slams government for acting like 'zombies' on the energy crisis and calls for them to 'wake up'
Martin Lewis has slammed the government for acting like "zombies" on the energy crisis after it was revealed more than six million households were already in debt ahead of the October rise.
Listen to this article
Loading audio...
Energy bosses are being called-in by ministers this week for talks over increasing profits, as millions of UK households struggle with soaring bills.
Crisis talks to "knock some heads together" will take place on Thursday after the price cap was forecast to hit more than £4,200 in January.
In a new dire outlook for households, Cornwall Insight said bills are set to soar to around £3,582 in October, from £1,971 previously, before rising even further in the new year.
The stark warning comes after power firm E.On reported it had made £3.5bn pounds in half a year, and BP was criticised for tripling its profits to £7bn in the last quarter - its highest taking for 14 years - while households struggle to pay their bills.
It has now been revealed that hard-pressed households already owe £1.3bn to their energy suppliers two months before bills are set to soar.
Minister quizzed over energy bill prices
The overall debt bill is already three times higher than it was a year ago, experts at Uswitch said on Wednesday, and it seems likely it will grow further over the winter.
Six million homes across the UK owe an average of £206 to their energy provider, according to a survey from the company.
Normally at this time of year people have built up a small war chest to help even out the increased bills during the winter months.
Money saving expert Martin Lewis hit out at the government for sitting like "zombies" on the energy crisis, as he called on the two Tory leadership hopefuls to set out how they will tackle the issue.
Mr Lewis told Good Morning Britain: "What we're facing here is a financial emergency that risks lives.
"I accept the point that Boris Johnson is running a zombie Government and can't do much, but the two candidates - one of them will be our prime minister - they need to get together in the national interest to tell us the bare minimum of what they will do.
Read more: Rachel Johnson urges Government to act before 'financial timebomb explodes'
"What we need to hear now - because the mental health damage for millions of people who are panicked about this is manifest - is we need to hear accurate plans."
Commenting on the proposals of Rishi Sunak and Ms Truss, Mr Lewis said: "Mr Sunak will effectively need to double every number in his previous support package, especially the poorest - from £1,200 to £2,400.
"With the Liz Truss plan, let's be plain: tax cuts will not help the poorest in society who are choosing between heating and eating because they don't pay tax.
"This is a national crisis on the scale that we saw in the pandemic. We are currently in that position where we are watching the beds fill up in European hospitals and doing nothing about it."
A perfect storm of cold weather and gas shortages could lead to a four-day blackout in January for big industries that heavily rely on energy - potentially expanding to households too.
Energy boss warns against refusing to pay bills
And to prepare the nation for the blackouts, the government is understood to have asked figures in the food and drink industry for their views on how major power outages could affect food supplies.
It comes after Kit Malthouse - the Chancellor of the Duchy of Lancaster - revealed on Monday that hospitals were also bracing for potential fuel shortages, with NHS bosses being urged to ensure that their "generators are properly serviced" and "diesel tanks are full".
Under the government's 'reasonable worst-case scenario' plans, Brits could face an electricity shortfall of around a sixth of demand, Bloomberg reported.
It means even with other back-ups in place - such as several coal plants being fired up - emergency measures may need to be triggered in order to conserve gas.
However, the department for Business, Energy and Industrial Strategy said in a statement that the scenario is "not something we expect to happen".
They added: "Households, businesses and industry can be confident they will get the electricity and gas they need."
