After a traumatic week for the UK’s energy market due to the soaring global gas prices, the government is reportedly considering offering emergency loans to energy firms.
According to reports, the loans are expected to encourage energy companies to take on customers of companies that go under administration.
Analysts claim that wholesale gas prices have soared by 250% since January.
During the weekend the Business and Energy Secretary, Kwasi Kwarteng, held a series of meetings with energy bosses and Ofgem’s Chief Executive to discuss the impact of gas price rises on the country’s energy supplies.
After these meetings, Mr Kwarteng reassured the public that the security of the country’s energy supply is not a cause for immediate concern.
Boris Johnson, who is currently in New York to join a UN General Assembly meeting said: “We have got to try and fix it as fast as we can, make sure that we have the supplies that we want, make sure that we don’t allow the companies we rely on to go under.”
A BEIS spokesperson said: “Protecting consumers is our primary focus and will shape our entire approach to this issue.
“It is too early to say whether any financial support will be necessary, but we are monitoring this situation extremely closely.
“The Business Secretary is in close contact with the energy industry on the impact of high global gas prices, having met senior figures over the weekend and hosted a roundtable with the energy industry and consumer groups this morning to speak further and to plan a way forward.”