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Ministers Considering Loans to Energy Companies to Counter Rising Bills

UK
Out overnight, but worth noting on the inflation front in the UK Times this morning:
  • Ministers are considering plans to lend energy companies billions of pounds to shield households from big rises in bills.
  • Energy companies want a £20 billion fund to help them to spread the soaring global cost of gas over a decade. Although that sum is judged to be “far too high”, officials are working on a plan for loans.
  • https://www.thetimes.co.uk/article/government-loans-to-energy-companies-could-protect-public-from-huge-bills-n0f8r8drs
  • Recall - the energy bill price cap is expected to rise by £500/year from April, with an extra £100/year coming from the collapse of a number of energy companies. This is seen boosting energy costs to 12% of income for the poorest households from 8.5% currently.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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