UK nationalizes faltering energy company | Finance

Rising energy prices have caused major problems in the UK energy sector. Many smaller energy suppliers attract customers at low rates and lose a lot of money on fixed contracts as the energy they have to buy becomes more expensive. In addition, the maximum rate for energy applies in the UK, which means that companies are currently also at a loss due to variable contracts.

Special manager

For Bulb, the government wants the judges to immediately appoint a special committee. As a result, the company’s customers can remain as usual for a while and the treasury will pay additional fees. Experts hope that in the long term these costs will be collected from the energy sector. And they will probably pass it on to British households.

Problems at Bulb Energy have forced more than two million UK households to switch energy suppliers. They were shifted to other companies by regulators, as has happened several times in the Netherlands recently. Bulb’s nationalization came after a larger British energy company indicated they couldn’t just take in more customers without getting into trouble themselves.

Shaun Dennis

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