London (AP) — UK energy regulators said Wednesday that they are considering appointing a manager to oversee the latest casualties in the domestic energy market following rising demand-driven gas prices. ..
Ofgem said the 1.7 million customers of Bulb, the largest company that was the victim of this year’s soaring gas prices, have seen no change as a result of this move. Wholesale gas prices have tripled this year, primarily because the global economic recovery from the coronavirus pandemic has increased demand.
If the application is successful, Bulb will run normally by administrator Teneo until a potential buyer is found or the customer leaves.
The decision to put the light bulb in the form of bankruptcy protection represents a change in tack by regulators, probably due to the size of the business. Ofgem usually simply fails the company and moves the customer to a new supplier.
Since the beginning of September, 22 energy suppliers have failed in the UK as a result of soaring wholesale gas prices, and critics have argued that the conservative government has over-regulated the market.
Executive Secretary Kwasi Kwaten said the special administrative regime is a temporary arrangement to provide an “ultimate safety net” that protects consumers and ensures a continuous supply.
“We don’t want this company to be in this temporary state for longer than absolutely necessary,” he said.
Many companies are forced to sell energy at a lower price than they bought because there is a limit to how much they can charge their customers.
Some large companies buy gas well in advance to avoid the worst effects of price spikes. However, many new small entrants to the market have not hedged in the same way and have been exposed to unprecedented pressure.
Ed Miliband, an energy spokesman for Britain’s leading opposition Labor Party, said the problems afflicting the market were the result of the government’s “regulatory failure.”
“Companies made dangerous bets and were allowed to do so, and the government and Ofgem significantly deregulated operating conditions in 2016,” he said.
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The UK aims to put the victims of the latest energy companies in control | WGN Radio 720
Source link The UK aims to put the victims of the latest energy companies in control | WGN Radio 720