Energy companies that cannot cut their bills should be nationalized, says Gordon Brown

The ex-PM has a plan to deal with energy bills hitting £4,200 - and says businesses that can't do it face should temporarily become public property as a 'last resort'

Gordon Brown has unveiled one of the most detailed plans yet to tackle the cost of living crisis (

Image: Reuters)

Gordon Brown today called for the renationalisation of energy companies as a 'last resort' in the face of soaring bills until 'the crisis is over'.

The former prime minister has said the energy price cap should be frozen, reversing plans for it to rise from £1,971 now to around £3,600 in October and over 4 £200 in January.

The "true costs" of energy supply must be assessed, social tariffs and permanent charges must be made fairer, and separate company agreements must be negotiated to keep prices low, he said. he declared, while companies must reduce their consumption.

Mr. Brown - who bailed out banks during the financial crash - wrote in The Guardian: "If businesses cannot meet these new demands, we should consider all the options we used with banks in 2009.

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"Secured loans, equity financing and, if that fails, as a last resort, to operate their essential services from the public sector until the crisis is over."

He said decisions must be made within days, including on October payments for the vulnerable, voluntary rationing to avoid power outages and urgent work on new supplies.

He added, "Time and tide wait for no one. Neither do crises.

"They don't take holidays and politely hang fires - certainly not to suit the convenience of an outgoing Prime Minister and the whims of two potential successors."

Around 30 energy suppliers have already gone bankrupt due to rising prices, despite Britons' bills capping.

The demands mean Mr Brown has unveiled one of the most detailed plans of any leading politician, despite not being an MP.

The Liberal Democrats also demanded that the energy price cap hike in October be scrapped, funded by a one-off £36 billion tax.

And Labor is due to unveil further plans next week, although contrary to reports, a source said Keir Starmer would not deliver a speech.

Labour and Rishi Sunak would both reduce VAT on household energy bills; Rishi Sunak said he would add "a few hundred pounds" to cost-of-living payments, and Liz Truss did not rule out direct payments despite calling them "Gordon Brown-style saving". /p>

British Gas was privatized under Margaret Thatcher in 1986 and 12 regional electricity companies followed suit in 1990.