Are higher energy really bills the best way to pay for bailing out the energy sector?
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The cost to UK households of bailing out nationalised energy retailer Bulb is expected to soar to more than £4bn by the spring unless the government achieves a sale, saddling every home with an additional £150 or more on its bills next year.
The new forecast from energy consultancy Auxilione illustrates the spiralling costs of supporting Bulb’s 1.4mn customers as wholesale gas and electricity prices surge. The company’s administrators are hamstrung by government rules that restrict hedging against rising energy prices.
The bailout of Bulb, which collapsed in November last year, is expected to be the most expensive since the rescue of RBS during the financial crisis. Unlike 2008, the government plans to make households absorb the cost through higher energy bills rather than funding the rescue through general taxation as it is doing currently.
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https://www.ft.com/content/cbe1c23e-...d-58065802c53e