Energy companies bust: Government not ‘complacent’, Kwarteng insists amid claims Ofgem warned of crisis
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Your support makes all the difference.The government has not been complacent over the energy crisis, Kwasi Kwarteng has insisted, after Labour’s Ed Miliband produced a letter he claimed was sent by regulator Ofgem to the business secretary 18 months ago warning of a “systemic risk” to the UK’s energy market.
A 250 per cent spike in wholesale gas prices has caused seven firms to collapse in a matter of weeks, with Avro Energy and Green becoming the latest to fold.
As figures from the regulator showed nearly 1.5 million households have now suffered their suppliers going bust, junior minister Paul Scully said it was “not going to be possible” to guarantee that their bills would not rise – contradicting assertions by Mr Kwarteng days earlier that customers being transferred to new providers should “be expected to pay the same amount”.
While all customers affected will continue to receive energy until Ofgem allocates them to a new – possibly more expensive – supplier, the regulator’s boss Jonathan Brearley warned MPs that the number of households affected “may well go well above” the hundreds of thousands.
Mr Scully also said it would be up to the energy watchdog to decide whether the price cap should rise. It is currently due to next be reviewed in April.
The business minister told Sky News the government was “planning for the worst-case scenario”, which he said was that gas prices would remain high beyond a short spike.
Both Mr Kwarteng and the regulator have insisted the cap should remain in place.
Food suppliers warn of empty supermarket shelves and panic buying without urgent action
In related news amid what one MP called the UK’s “autumn of discontent”, farming and food industry bodies have warned of panic buying and empty supermarket shelves through the winter.
In an open letter to Boris Johnson, organised by the National Farmers’ Union (NFU), 12 food and drink trade groups said the food and farming sector is on a “knife edge” due to a “crippling” shortage of workers across the entire supply chain.
Companies must be given permission to recruit more workers from overseas to ease shortages and ensure enough food can be picked, processed and brought to shops, the organisations said. My colleague Tim Wyatt reports:
Food suppliers warn of panic buying and empty shelves over winter
Government urged to introduce new 12-month visa to bring in more overseas workers
Five things you need to know about coping with the energy crisis, according to Martin Lewis
Financial expert and founder of MoneySavingExpert.com, Martin Lewis, has issued some advice to help households deal with soaring energy prices.
“I warned you the energy market was dire. Now, sadly, it’s got far worse,” Mr Lewis told his readers. Read more on his tips here:
Five things you need to know about the energy crisis, according to Martin Lewis
‘I warned you the energy market was dire. Now, sadly, it’s got far worse,’ Mr Lewis wrote
How much more will consumers pay if their energy provider goes bust?
The default tariff cap set by Ofgem rises to £1,277 per year from next month, my colleague Holly Bancroft reports.
As a result, many of the nearly 1.5 million customers whose suppliers have gone bust will be transferred to companies who will charge up to this rate.
This will mean a significant price hike for people who had found cheap deals with smaller suppliers. Customers who took out one-year-fixed-price deals with Avro in March will have signed up to pay £920 a year, for example.
Millions of households could see their bills increase by more than £350 when they are bumped up to the capped rate of £1,277. Find out more details here:
How much more will consumers pay if their energy provider goes bust?
Millions of households could see their bills increase if they are forced to switch to another supplier
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