The boss of Scottish Power has warned that millions of customers could face a horrific winter unless energy firms get a major government intervention. 

Speaking to the BBC, the chief executive of Scottish Power, Keith Anderson said that another expected rise in energy bills in October of between £2,500 and £3,000 could see huge losses for suppliers and many customers unable to pay their bills. 

Adding that he warned regulator Ofgem that sets the new price cap too low could force suppliers to collapse or foreign-owned firms to leave the market. 

Discussing his plan to tackle the potential crisis, Mr Anderson said that he has called for ten million households to have their energy bills reduced by £1,000 this October.

Saying that the government plan to give each household £200 towards energy bills would not be enough. 

Telling the BBC: "We need to be realistic about the gravity of the situation - around 40% of UK households, potentially 10 million homes, could be in fuel poverty this winter."

Currently, the government has said it will offer extra relief of £150 in April via the council tax system in England.

Plus in October customers in England, Scotland and Wales will receive a £200 rebate on energy bills.

But this will then have to be repaid at £40 a year across five years starting in April 2023.

However, Mr Anderson said a £10bn tariff reduction fund could be paid for by adding £40 annually to all household energy bills for the next decade. 

Adding that it would be the most effective to avoid fule poverty for the most vulnerable. 

In terms of energy firms, Mr Anderson said that energy companies could collapse if their customers are unable to pay their bills.