Home Business News Fears taxpayers could bailout energy companies as gas prices have rocketed by 250% since January

Fears taxpayers could bailout energy companies as gas prices have rocketed by 250% since January

20th Sep 21 11:17 am

The government are in crisis talks with energy companies as they are calling for a multi billion-pound bailout as gas prices have soared by 70% in a month and 250% since January.

Dozens of gas and electricity firms could collapse prompting fears taxpayers could end up footing the bill.

Emergency meeting with energy suppliers are to take place today with the Business Secretary Kwasi Kwarteng as the firms are calling for government support throughout the winter.

Kwarteng met with the regulator Ofgem on Sunday and said there are “well-rehearsed plans” in place to prevent customers being cut off.

The Prime Minister Boris Johnson told reporters, “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.”

Johnson added, “I have no doubt that supply issues will be readily addressed.

“We’re very confident in our supply chains.

“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.”

Experts have predicted that by the end of the year there could only be between six and 10 companies left as four firms collapsed over the summer.

Kwarteng said, “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.

“The objective is to continue supply to customers until the company can be rescued or customers moved to new suppliers.”

This could have a knock-on-effect for the food industry as the UK’s largest poultry supplier has warned there will be a meat shortage within two weeks.

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