U.K. to Revise Energy Market Strategy in Wake of Supplier Collapses
(Bloomberg) -- The U.K.is planning to update its strategy for the retail energy market in the wake of an implosion that’s seen a raft of power suppliers go bust.
The government is inviting contributions from industry stakeholders as it revises its plan for the market that was published earlier this year, Business and Energy Secretary Kwasi Kwarteng said in a statement. It follows an announcement earlier Wednesday by energy regulator Ofgem to start stress testing suppliers from January.
Since the start of August, 24 domestic suppliers in the U.K. have collapsed as the regulator’s price cap stopped thinly-hedged businesses from being able to pass on surging gas and power prices to their customers. Kwarteng also reaffirmed the government’s commitment to the price cap in his statement, saying it has protected millions of customers.
The new strategy, to be published “when the market has stabilized,” will focus on how the retail market can best serve consumers and how energy companies can create investment. It will also address how the market and the price cap can “evolve to enable a lowest-cost, flexible and resilient energy system that continues to protect consumers,” the statement said.
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