U.K. Government Seeks Companies' Hedging Positions: Power Update

financialpost.com
3 min read
fairly easy
(Bloomberg) — U.K. energy companies are seeking a massive government bailout as a surge in gas and electricity prices threatens to push small unhedged…
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U.K. Government Seeks Companies' Hedging Positions: Power Update

Article content (Bloomberg) — U.K. energy companies are seeking a massive government bailout as a surge in gas and electricity prices threatens to push small unhedged suppliers out of business. After emergency talks all weekend, Business Secretary Kwasi Kwarteng meets industry bosses early afternoon local time on Monday. Time is pressing, as the CEO of one energy supplier warned it may not survive the winter without government help. We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or U.K. Government Seeks Companies' Hedging Positions: Power Update Back to video The U.K.'s usual mechanism for dealing with failed suppliers — whereby customers are transferred to a surviving company — may not work this time as surging market prices make it unprofitable for a company to take on more clients.

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Article content As for customers, they are protected for now by a price cap — which is adding to the pressure on companies — but that will be revised next year in a new risk to the inflation outlook. Key Developments Companies are seeking a bailout from the government to help them handle…
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