UK govt set to hold crisis talks with energy industry

Wednesday 22nd September 2021 06:54 EDT
 
 

The UK government held crisis talks with the energy industry, and regulator Ofgem as a surge in gas and electricity prices threatens to put more suppliers out of business and squeeze consumers. The talks came as UK energy company Bulb seeks a bailout to stay afloat amid surging wholesale gas prices, while Prime Minister Boris Johnson maintains the issues faced are global.

Business Secretary Kwasi Kwarteng said the government has a plan to put a special administrator in place in the event of companies’ failure. Seven energy suppliers in the UK have failed this year and there are concerns more will do so as prices rise, exposing unhedged companies that have sold energy to customers at lower levels than they can now buy in the market.

Ofgem released a statement saying, “Ofgem continues to work closely with government and industry to ensure consumers continue to be protected while global gas prices are high and will speak further on these issues at the industry round table soon.”

Johnson’s spokesman said there are currently no plans to change the energy price cap and it will remain in place to “protect consumers.” They said, “It’s in place to protect people’s energy bills. That’s what it does, that’s what it has done, and as I say, it’ll continue to do so.”


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