UK energy suppliers face ‘carnage’ amid rising gas prices | OilPrice.com

Unless the government assesses energy prices, the CEO of one of the major suppliers said Thursday that another 20 energy suppliers in the UK could fall into what appears to be a “massacre” in the coming months.

In the UK, more than a dozen energy suppliers have left the retail power market in recent weeks, and they can do more as bulk gas prices rise.

Europe’s tight gas market, low wind speeds, unusual low gas reserves and carbon prices combined in recent weeks have pushed Benchmark gas prices and energy prices to record highs in large economies.

The UK has an energy security cap, which protects families from high bills by setting prices for suppliers, but also includes energy suppliers.

“Unless the UK government intervenes and assesses inflation recently,” we are in danger of falling asleep, “Scott Keith Anderson, chief executive of Scotland Power, told the Financial Times.

“We expect at least 20 suppliers to go bankrupt next month,” Anderson told Sky News.

The price tag currently costs suppliers about $ 6.9 billion (£ 5 billion), the chief executive of Scotland Power, one of the largest utilities in the UK, told Sky News.

Last month, the UK’s energy regulator said more gas supplies were on the verge of collapse as rising gas prices put an unprecedented burden on small electricity and gas suppliers.

“I think this is a remarkable change in the costs of those suppliers,” said Jonathan Breley, chief executive of Ofgem, Britain’s independent energy regulator.

In a joint statement issued by Breley and UK Secretary of Business and Energy Kwasi Quarting, energy prices remained high.

By Tsvetana Paraskova for Oilprice.com

More high reading from Oilprice.com

.

Leave a Comment