Pulp, with 1.7 million customers, is mired in a financial crisis due to the energy crisis. The company demanded the mandatory management of an energy regulator called Ofgem. This is too large for a competitive company to take immediate responsibility for.
Thus the government and Ofgem will temporarily manage the bulb through the administrator, ensuring uninterrupted availability of gas and electricity to the company’s customers. The operating costs of the seventh largest energy supplier in the UK, with a market share of about 7%, will be borne by the Treasury.
This is the first use of this measure in the field of compulsory nationalization and energy of a British company since the financial and banking crisis of 2008. Uswitch energy policy expert Justina Miltienyte said it marked a turning point in Britain’s energy crisis.
The sharp rise in gas and electricity prices from the United Kingdom has led to a decline in 21 energy suppliers since August.
“The bulb will require a significant cash injection, which will be taken care of by the Ministry of Finance in the short term.” Said Ellen Fraser of Beringa Partners. In the long run, these costs will be borne by the industry and sent to customers ’accounts, he said.
Ofgem said he would ask the court to appoint a mandatory administrator to operate the bulb. The company’s customers will not feel the change, they will usually receive gas and energy supplies and their tariffs will not change.
“Passionate coffee fanatic. Social media lover. Twitter expert. Extreme music practitioner. Zombie junkie. Hardcore travel specialist.”