The UK is ready for a “worst-case scenario” as a result of the energy crisis, with a gas rationing warning issued.
CONSUMERS Kay Burley grilled Minister Paul Scully on the “worst-case scenario” of gas pricing as the UK continues to see more energy companies fail.
Ministers are expecting the “worst-case scenario” in terms of gas prices, according to Paul Scully, who says they may stay high beyond “a short rise.” The disclosure came after the bankruptcy of two energy companies, Avro and Green, on Wednesday as a result of rising gas costs, affecting millions of consumers. Following Mr. Scully’s grim prediction, BP issued a warning to the government, stating that they are planning to curtail gas delivery to gas stations.
“What is the worst-case scenario?” Ms Burley inquired.
“We want to make sure that we can protect consumers,” Mr Scully added.
“At the moment, we’re talking with gas providers, energy companies, and Ofgem on this.”
“So, what is the worst-case scenario?” Ms Burley inquired once more.
“Well, that it lasts longer than a quick spike,” the minister remarked.
“What does that look like in pounds, monetarily?” Ms Burley interjected.
“I can’t give you a figure right now,” Mr Scully replied.
The host also questioned the government’s stance on the existing energy price cap, adding, “We’ve been assured that energy prices will remain particularly high this winter.”
“We know that there are extraordinary sets of conditions that have piled up with greater demand in Asia, with the fire in Ashford causing complications around transporting gas over from France,” the Conservative minister said.
“However, the majority of our energy is created domestically and in collaboration with Norway, accounting for around 80% of our total energy.
“As a result, we’re emphasizing on pricing. When companies leave the market, we want to make sure we have a supplier of last resort so that customers may be transferred.”
“The energy price cap is certainly keeping costs down,” he continued.
“Even with those increasing pressures for so many individuals, consumers across the country are feeling the pinch.”
On Wednesday, Avro became the largest of a string of recent energy market collapses, with 580,000 residential gas and electricity customers. The number of collapsed companies now accounts for more than 5% of the market.
PFP, MoneyPlus, Utility Point, and People’s Energy, all of which shuttered on Wednesday, have all left the supplier market in less than two weeks. HUB Energy, which had only 6,000 clients, likewise ceased operations last month.
Ofgem has stated that a new supplier would be appointed. “Brinkwire News in Condensed Form.”