Monday, May 23 2022 Sign In   |    Register

News Quick Search



Front Page
Power News
Today's News
Yesterday's News
Week of May 16
Week of May 09
Week of May 02
Week of Apr 25
Week of Apr 18
By Topic
By News Partner
Gas News
News Customization


Pro Plus(+)

Add on products to your professional subscription.
  • Energy Archive News

    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    UK government holds emergency talks to bolster energy firms

    September 20, 2021 - Via AP news wire


      Britain's business secretary will hold emergency talks with industry leaders and consumer groups Monday as the U.K. government looks for ways to support energy companies threatened by soaring natural gas prices.

      Kwasi Kwarteng said late Sunday that Britain’s energy regulator would ensure gas and electricity keeps flowing to customers if their energy supplier fails. If necessary, the government will appoint a special administrator to ensure supplies until a company can be rescued or its customers moved to new suppliers, he said.

      Four small energy companies have failed in recent weeks because of the sudden increase in gas prices worldwide. Wholesale gas prices in Britain have tripled this year as the global economic recovery from the COVID-19 pandemic increases demand at the same time storms in the U.S. and planned maintenance have crimped supplies.

      U.K. authorities stress that Britain’s domestic gas production coupled with imports from Norway mean there are ample supplies to meet the nation’s energy needs.

      “Energy security will always be our absolute priority,” Kwarteng tweeted Sunday. “I am confident security of supply can be maintained under a wide range of scenarios.”

      The Times of London reported that the cost of supporting the industry may ultimately cost taxpayers billions of pounds.

      One option proposed by some large energy firms is to move the customers of failed suppliers into a temporary government-owned company that could be sold at a later date, British media reported. This proposal would be similar to the so-called bad banks that were used to house the high-risk assets of some lenders during the global financial crisis.

      Another option is for the government to provide loan guarantees to large energy suppliers to absorb the customers of failed companies. The costs of such a program would ultimately be recovered through higher energy bills.

      “This is really a function of the world economy waking up after COVID,” Prime Minister Boris Johnson said as he arrived in New York on Sunday. ”We’ve got to try and fix it as fast as we can, make sure we have the supplies we want, make sure we don’t allow the companies we rely on to go under. We’ll have to do everything we can.”

      Read More

      Reshuffle in full: Who is out and who has been promoted?

      Boris Johnson flexes muscles with cabinet shake-up for post-Covid era

      PM won’t say how Universal Credit claimants can recoup lost £20-a-week


    Other Articles - International


       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.