Saturday, December 25, 2021

There is a threat of an energy crisis in Britain due to rising natural gas prices


 

 British energy companies have turned to the government for help over rising gas prices, warning that otherwise a crisis could break out in the country, writes the British newspaper The Daily Telegraph, citing top managers of companies in the industry.

It is noted that the managers of EDF, Good Energy and Energy UK, operating in the United Kingdom, called on the government to intervene, as rising gas prices "put the industry on the brink of disaster." According to the publication, the enterprises in the industry want the government to support the business, in particular by reducing the VAT rate for them.

 "This is a national crisis. Gas and wholesale electricity prices have risen to unprecedented levels in the last three weeks. No one in the industry can feel insured," said Good Energy CEO Nigel Pocklinton. Energy UK chief Emma Pinchbeck agreed with his point of view, recalling that "the energy sector has warned in recent weeks of a major threat to the British economy due to the unprecedented and alarming price of gas in Europe."

 For his part, EDF's managing director of customer service, Philip Comaret, said the UK would face a "critical situation" this winter. "Unfortunately, this is just the beginning. All providers are committed to supporting customer well-being and EDF is helping, but the scale of the problem consumers are facing is too great. Utilities cannot do it alone," he said.

 In total, since the beginning of September, more than 20 energy companies in the UK, serving several million people, have filed for bankruptcy due to record high gas prices, including Bulb, the country's seventh largest customer base. Although the ceiling on electricity prices for consumers, set by the UK's Gas and Electricity Authority, has been raised since 1 October, many UK utilities continue to suffer losses.

 The government has consistently stated that it does not yet intend to provide them with financial assistance, and according to the British Minister for Business, Energy and Industrial Strategy Quasi Quarteng, new bankruptcies are expected.




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