A top Tory has dismissed an industry proposal to freeze energy bills for two years to save struggling Brits from being clobbered by price hikes.
Armed Forces Minister James Heappey poured cold water on the £100billion loan scheme idea put forward by Scottish Power chiefs, which allow firms to cap household bills at around £2,000 for two years.
Tory leadership hopeful Rishi Sunak dismissed "risky" plans that would require too much Government borrowing.
The new energy price cap is expected to hike annual bills to £3,554 from October to allow suppliers to claw back a surge in wholesale energy costs amid Russia ’s continuing war in Ukraine.
Keith Anderson, boss of the energy giant, told the Mirror that next price cap rise - due to be announced on Friday - will be “ absolutely catastrophic, truly horrific”.
He said: “We can’t allow that to go through to people’s bills. We need to cap the price, freeze the price at about the current level.”
Mr Anderson has presented his idea to Business Secretary Kwasi Kwarteng, who is tipped to be the next Chancellor if Liz Truss wins the Tory leadership contest.
But Mr Heappey poured cold water on the idea - despite admitting Brits were facing a "really expensive winter".
He told Sky News: "These are eye-watering amounts of money... I don't think a universal freezing of everybody's energy bills really helps to get taxpayers' money into the bank accounts of people who need it the most.
"That's why I think that the more targeted packages both leadership candidates are proposing are probably the better solution."
He insisted that the Government was going to help people with the soaring cost of living.
Mr Heappey said: "I know it will be the first priority for the new Prime Minister, to make sure the Government does more to help them through the really expensive winter that lies ahead."
The cost of living crisis is dominating the final stretch of the Tory leadership race, with Liz Truss widely expected to emerge victorious in the contest.
Former Chancellor Mr Sunak and Ms Truss have both ruled out a freeze - despite separate calls from Labour and Lib Dems.
Mr Sunak said that any measures to alleviate the cost-of-living had to be affordable and not make inflation worse or it would be a "gamble with people's savings, with their pensions, with mortgage rates".
He added: "I think that is a gamble with people’s savings, with their pensions, with mortgage rates, in making inflation become more embedded, and that won’t help anybody if that happens, because inflation makes everybody poor. It’s pernicious.
"I am nervous and sceptical about plans that are complacent about that risk."
Mr Sunak also refused to say whether he would support Ms Truss' Budget plans if she becomes PM.
