December 9, 2021

Beyond Going Long

Complete UK News World

Britain will temporarily take over Bulb due to the energy crisis

Thus, the government and Ofgem will temporarily run Bulb through the administrator and ensure that the company’s customers have uninterrupted access to gas and electricity.

Britain’s energy crisis is deepening. The government is forced to nationalize the electricity and gas company Bulb.

Bulb, which has 1.7 million customers, has faced financial difficulties due to the energy crisis. The company requested forced management of the power regulator Ofgem. It’s too big for a rival company to take over immediately.

Thus, the government and Ofgem will temporarily run Bulb through the administrator and ensure that the company’s customers have uninterrupted access to gas and electricity. The Treasury will bear the costs of operating the UK’s seventh largest energy supplier, with a market share of around 7%.

The first forced nationalization of the company

This is the first forced nationalization of a British company since the financial and banking crisis in 2008 and the first use of this measure in the energy sector. This points to a turning point in Britain’s energy crisis, said Justina Millenett, Oswich energy policy expert.

The sharp rise in gas and electricity prices since the UK has caused the collapse of 21 energy suppliers since August.

“Bulb will need a significant cash injection, which is likely to be addressed by the Treasury in the short term,” said Elaine Fraser of Baringa Partners. In the long term, she added, these costs are likely to be charged to the industry and transferred to clients’ accounts.

Ofgem said he will ask the court to appoint a coercive administrative officer to operate Bulb. The company’s customers will not feel the change, they will continue to receive gas and energy supplies as normal and their tariffs will not change.

See also  The President of the European Commission called for new sanctions against Belarus