The head of Scottish Gas owner Centrica has decided not to take his bonus this year amid continuing anger about soaring household bills, he has revealed.

Chief executive Sam Laidlaw said trust in the energy sector was at an "all time low", with an urgent need to rebuild it with consumers.

Speaking at the CBI annual conference in London, Business Trust Under the Spotlight, Mr Laidlaw, said there was a need for leadership in the current environment, he said, adding it had to be balanced with being able to attract staff. He added: "Just to continue in this world where households are under pressure, and assume it is business as normal, is not the way thoughtful remuneration committees think about it."

Mr Laidlaw repeated the industry's pledge to cut bills if the Government switches environment and social costs to other forms of taxation. He said the energy industry was "in the eye of the storm", conceding firms should be more transparent, explain how bills are made up and improve the process of switching suppliers.

More than half a million British Gas customers will receive a special discount of £60 this winter, on top of a £135 warm home discount, he said. Mr Laidlaw said his company had cut costs by £300 million in the past few years, and would pass on any reductions in the social and environmental part of energy bills. "We are listening - we get it, absolutely. We know there is a problem."