Wednesday, October 27, 2021

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    Ministers under fire as energy retailers rescue package put on ice

    UK energy renewal

    One head of a challenging retail energy provider in the UK has attacked the government for failing to stop the collapse of more and more suppliers amid growing industry concerns. Rescue package Placed on ice.

    Peter McGirr, Founder and CEO of Green, Energy supplier collapsed this week Its regulators, Ofgem and the government, have created a “regulatory environment” that has caused failure as wholesale energy prices soared to record levels.

    Most Energy supplier It is currently in the red as wholesale costs far exceed UK household electricity and heating price limits and there is growing concern that many isolated customers will be smoothly transferred to surviving providers. It has become.

    McGirr said in his letter that Green, along with 14 other suppliers, sought help from the government on Monday.

    “We wrote to the Prime Minister, Secretary-General, and Minister of Finance Ofgem … We are calling for a review of the energy price cap methodology and the construction of an immediate support package,” said McGirr. I am.

    The founders of Green have expressed concern that large energy providers can also fail. “If the costs of supplier failure are interrelated, this will also increase the pressure on the remaining suppliers on the market,” he said.

    Business secretary Kwasi Kwaten is discussing with the Treasury to offer a state-sponsored loan to a large energy company to persuade them to take on the customers of a failed supplier.

    But the business secretary Signal on wednesday He wanted the sector to solve the problem without outside assistance.

    Allies said Mr. Quarten was increasingly confident that the industry could survive the crisis without state financing. As a result, no immediate announcement of how potential lending schemes work is expected.

    The Executive Secretary has not completely abandoned that idea. Instead, he wants most of the failed companies to be dealt with under the existing “last resort supplier” system of transferring customers to other companies. If it turns out to be infeasible, the government has the authority to appoint a special administrator.

    However, retail energy suppliers are concerned about what is considered a denial of the scale of the problem, with approximately 1.5 million customers losing their suppliers in recent weeks.

    This week, the cost of providing gas and electricity to the average household for a year was calculated as follows: Over £ 550 Beyond the £ 1,277 price cap level, absorbing a large number of customers can result in serious losses.

    Shadow business secretary and former Labor leader Ed Miliband said Thursday letter Sent by Ofgem last year, it warned Kwarteng about the risk of supplier failure.

    In a letter, Ofgem CEO Jonathan Brearley said consumers would be at risk if a large number of suppliers failed one after another, including the possibility of some households being cut off. ..

    “The impact of a significant supplier failure on customers is widespread and highly devastating, and there is a risk that some customers will lose supply,” Brearley wrote in March 2020.

    Ofgem reiterated this month that household items are not at risk when the provider is folded.

    “We are confident that the system we are deploying means that customers are not at risk of losing power,” regulators said after the 2020 letter was released Thursday. Repeated.

    “This letter was sent in the midst of the Covid crisis, and the content is related to Covid’s impact on energy suppliers,” Ofgem said.

    Ministers under fire as energy retailers rescue package put on ice Source link Ministers under fire as energy retailers rescue package put on ice

    The post Ministers under fire as energy retailers rescue package put on ice appeared first on California News Times.

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