ICYMI -Business secretary Kwasi Kwarteng says no bailout for failed energy companies

Author: Eamonn Sheridan | Category: News

Gas price hikes are impacting suppliers in the UK. Yhey've been caught between high demand, short supply, and prices to customers protected from sudden hikes in wholesale gas prices through the energy price cap.

The cap means energy firms are unable to pass on higher wholesale costs to their customers. Some firms have already gone go out of business.

The UK government is considering offering emergency state-backed loans.

Kwarteng said the government would "not be bailing out failed companies" 
  • "The current global situation may see more suppliers than usual exiting the market but this is not something that should be any cause for alarm or panic" 
  • "The taxpayer should not be expected to prop up companies which have poor business models and are not resilient to fluctuations in price."

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