Government considers temporary nationalisation of energy companies to stop collapse

Government considers temporary nationalisation of energy companies to stop collapse

9/20/2021 1:25:00 PM

Government considers temporary nationalisation of energy companies to stop collapse

‘Special administrator’ could be appointed as gas prices and energy cap put companies at risk

✕Gas prices are set to surge(Getty Images/iStockphoto)energycompanies to stop them collapsing from surging gas prices, ministers have indicated.Business Secretary Kwasi Kwarteng is holding crisis talks with firms following a meeting with regulator Ofgem on Sunday. Mr Kwarteng said"well-rehearsed plans" were in place to ensure consumers were not cut off.

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And he indicated that he would be prepared to appoint a"special administrator" that would see the firms taken under the government's wing – effectively nationalising them on a temporary basis.The business secretary said consumers would be protected from sudden price hikes through the Government's energy price cap.

But the cap puts pressure on consumers who are unable to pass on costs when wholesale costs rise, with four small energy companies having already folded and fears more could follow.Regulator Ofgem has said it will ensure people on failed suppliers will be picked up by another company.

Speaking on a diplomatic visit to New York Boris Johnson sought to reassure consumers the price increases were only"temporary" as the world economy picked up after the Covid pandemic."It's like everybody going back to put the kettle on at the end of a TV programme, you're seeing huge stresses on the world supply systems," he told reporters travelling with him to the United Nations General Assembly in New York.

But prices have surged higher in Britain than elsewhere in Europe and critics say Mr Johnson's decision to leave the EU's single market for energy is to blame for the crisis. Mr Johnson argued that leaving the single market would give Britain more independence.

Elsewhere theinewspaper reports that energy firms are lobbying to end the government's energy price cap policy, and theFinancial Timessays the industry is pushing for the creation of a so-called"bad bank" to absorb unprofitable customers from firms that fail.

OGUK, representing the offshore oil and gas industry, reported wholesale prices for gas have surged 250 per cent since January - with a 70 per cent rise since August alone.Following a weekend locked in emergency talks, minister Mr Kwarteng acknowledged it was a"worrying time" for customers.

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"Our priority is to protect consumers. If a supplier of last resort is not possible, a special administrator would be appointed by Ofgem and the Government," he said."The objective is to continue supply to customers until the company can be rescued or customers moved to new suppliers."

Secretary of State for Business, Energy and Industrial Strategy Kwasi Kwarteng leaves Downing Street after attending the weekly Cabinet meeting(Anadolu Agency via Getty Images)At the same time ministers are grappling with warnings of potential shortages on the shelves as the knock-on effect of the gas price rise ripples through the economy.

Producers have warned that supplies of meat, poultry and fizzy drinks could all be hit due to a shortage of carbon dioxide (CO2).Mr Johnson, however, insisted that he remained confident energy supplies would be maintained."I have no doubt that supply issues will be readily addressed. We're very confident in our supply chains," he said.

"But in the meantime, we will make sure we work with all the gas companies to do whatever we can to keep people's supplies coming, to make sure they don't go out for business, and to make sure we get through the current difficult period."

Conservative peer Lord Barwell, who was previously Theresa May's chief of staff, on Sunday night warned that the current situation could"become a crisis"."It definitely has the potential to become a crisis," he told BBC Radio 4's The Westminster Hour.

Read more: The Independent »

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Let's hope it doesn't stay temporary. What did Tories say about Labour and the 1970's again? Why make it temporary? If being unable to access something could result in death, that something shouldn't be managed for profit. Probably should never have been privatised in the first place . “Conservative” government.

Another Corbyn policy adopted Yet again, when capitalism fails, as it always does, socialism needs to prop it up. National interest, I can see why. We need to start burning coal and gas again. Open mines and get fracking. We can have plentiful cheap energy if we stop this ridiculous pursuit of a hugely expensive and unreliable green energy utopia.

Yeah 'temp' cause they like giving those kinda powers back once enforced, B J needs to stop acting as if he is running the LP and get back to the Conservative side of thinking. 😤 Thanks very much Extinction Rebellion we are going to freeze this Winter. How many old people will die of hypothermia.

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Free enterprise exchange or free commodity order

Four more small energy firms could go bust next weekRising wholesale gas prices means some companies are unable to supply energy customers have paid for. In Mandalay, the Terrorist cracked down the anti-military strike. No one was arrested, according to early reports. WarCrimesOfJunta Sep18Coup WhatsHappeningInMyanmar BBCPolitics Tr and get a British Gas engineer to install a energy saving HIVE thermastat - another BorisJohnson Number10press BREXIT knock ons so food shortages and now heating next EVERYONE will suffer from no heating due to shortages Keir_Starmer UKLabour Conservatives again, the decline and higher prices started with their sell off of British Gas, so many continue to vote against own best interests including Brexit.

Outlook for small energy firms ‘looking bleak’ amid gas wholesale price risesForeign Office minister James Cleverly said the Government would prefer that companies stay afloat ‘organically’. Global Britain well placed to thrive in the international trade markets. !!? . Maybe need to revisit that statement.

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