The British minister will invest £ 1.7 billion in taxpayer money to keep the failed energy supplier, the light bulb, running while being controlled by the administrator on behalf of the government.
Light bulbs, the seventh largest supplier in the UK and with 1.6 million customers, this week Support the process Be placed in “special control”, a mechanism to protect customers of large suppliers in the event of bankruptcy.
On Wednesday, the UK government revealed that it would have £ 1.7 billion of working capital available to support the company until it could be sold, reorganized, or transferred to an alternative provider. This is the first time a special management process has been introduced in the energy sector, even though it has existed since 2011.
Energy Minister Greg Hands said the government’s priority is “to protect consumers.”
“The appointment of a manager ensures that the energy supply remains normal for light bulb customers across the country and provides significant reassurance while a lasting solution is agreed,” Hands said. I added.
£ 1.7 billion of government support was first reported by Bloomberg.
Light bulbs are the largest energy supplier in the UK to collapse in about 20 years and from the beginning to the 23rd of August as the industry struggles to cope with soaring wholesale prices.
That failure has exacerbated the demand for more stringent regulations in the UK energy supply sector. Many analysts and executives say that disasters occur because so many companies are offering deficit transactions and there is no or inadequate hedging policy to protect them from rising wholesale energy prices. I was warning that I was waiting for you.
Executive Secretary Kwasi Kwaten told the House of Commons Wednesday that in the case of light bulbs, regulators could not rely on Britain’s usual safety nets for failed suppliers as households were soon transferred to rivals. rice field. Of that customer’s book size.
“The special government is a temporary arrangement,” Kwarteng argued, adding that it would maintain the invoice at “a reasonably reasonable minimum cost to incur while ensuring market stability.”
“House needs to understand that the company doesn’t want to be in this temporary state for longer than absolutely necessary,” he added.
Edward Miliband of Shadow Business Secretary said the crisis in this sector represents a “systematic failure of regulation.”
“Companies made dangerous bets and were allowed to do so,” he added.
The light bulb was described as follows Boris Johnson’s “wonderful”, The Prime Minister of the United Kingdom, when he visited the headquarters in London within four months. But it has long been the center of speculation in the energy industry about its financial position and its ability to offer prices that are often below the UK energy price cap.
Keith Anderson, CEO of Scottish Power, one of the UK’s top six suppliers, said on Monday that Bulb’s failure “has been going on for a long time.”
Light bulbs blamed the end of wholesale prices and price caps for more than 15 million households in the UK, forcing suppliers to sell energy. “With a serious loss.”
By the end of winter, more supplier casualties are expected.
Consultancy Baringa Partners estimates that by the end of winter, only 10 suppliers will be able to leave. According to Ofgem data, there were still 50 people at the end of June.
Additional Report by Kaye Wiggins in London
UK to put up £1.7bn to support Bulb in special administration Source link UK to put up £1.7bn to support Bulb in special administration
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