Secretary-generals suggest that ministers are considering new steps to protect vulnerable consumers from the “living cost crisis” during the energy crisis.
Kwasi Kwaten argued that despite the bankruptcy of some energy suppliers, Britain has enough capacity to meet demand, so this winter “there is no problem with the lights going out.” ..
However, taxpayers are considering state-backed loans to sustain the industry and are in urgent talks with carbon dioxide (CO2) producers who are shutting down amid soaring gas prices. It is done.
It is understood that the government has almost agreed to a deal worth tens of millions of pounds with companies such as light bulbs to save light bulbs and other energy companies from the collapse.
A deal has also been nearly agreed to allow CF Industries, the US fertilizer company, the UK’s largest producer of CO2 gas.
All transactions are expected to take the form of taxpayer-backed low-interest or interest-free loans, which may be abandoned when the government invests in an energy company and the loan is repaid.
It also allows energy companies such as light bulbs to spend more time seeking additional investment.
A senior Treasury source said “some or all” of the deal between the energy company and the US fertilizer company could be announced on Tuesday.
Senior Tories, opposition lawmakers, and “living cost crisis” experts, as the crisis also coincides with the abolition of the £ 20 rise to Universal Credit (UC) and comes after the largest increase in record inflation. Caused fear from.
After crisis negotiations with the energy industry on Monday, Mr. Quarten argued that “consumers will come first” after rejecting calls from the six major energy suppliers to lift their household caps.
However, the default rate consumer cap is still set to increase by £ 139 a year, and 4 million prepaid customers are facing a £ 153 rise, so the minister said the £ 140 warm home was low. He also said he was “seeing” how the price would be discounted. Income households were able to continue to support those forced by new suppliers and were discussing measures to protect them with the Treasury.
Kwarteng emphasized that the government will not bail out bankrupt “failed” suppliers because it cannot cope with the 250% rise in wholesale gas prices since January.
But if the energy crisis worsens and more suppliers hit the wall, taxpayers can still face rising costs.
Ministers are considering three options. A state-sponsored loan to help large companies take on customers from bankrupt companies. Appoint a special manager to the bankrupt company to ensure continuous supply until the customer can relocate, or establish a temporary “bad bank” supplier reminiscent of the financial crisis.
Kwasikwaten met Tony Will, the boss of CF Industries, which supplies 60% of UK food-grade CO2, on Monday night and resumed production at two fertilizer plants.
Administrator of the U.S. Environment, George Eustice, will hold a roundtable today with representatives from the food retail, processing and manufacturing sectors, warning that product shortages will worsen in the face of tight CO2.
In a statement from the House of Commons, Mr. Quarten said he was “continuously discussing” with the Treasury on measures to protect vulnerable customers from rising bills.
He emphasized that: “I’m always talking to the Prime Minister about all sorts of things and all sorts of measures we can bring in to ensure that people are protected from this surge in gas prices.”
Resolution Foundation CEO Torsten Bell said raising energy price caps would hurt poor households as energy prices are unlikely to be subject to fixed rates and are unlikely to increase billing by £ 14. I warned you to give it.
“Result: Autumn looks like a living expense,” Bell said.
Former Tory cabinet minister Damian Green warned that there was a “crisis of living costs” and potentially “a very difficult time for hundreds of thousands of people in the country.”
“This is one of the things we almost forgot because of the low inflation of the entire (inflationary) generation … but it could be the biggest political issue in the world.”