That figure may prove too large, though. It’s the maximum loan the state will provide to buy all the power required by Bulb customers until the end of March, when Octopus will take on full responsibility for buying wholesale power. Octopus itself thinks the loan could be more like 2.4 billion pounds, as wholesale prices have recently fallen. If that’s correct, regular payments by Bulb customers will cover the cost.
In a way, the Bulb rescue is a smaller version of Britain’s wider energy mess. The government’s Energy Price Guarantee, whereby the state picks up any difference between capped energy bills and the true wholesale cost of supplying the power, couldtaxpayers 16 billion pounds in the first three months of 2023 alone. With retail power prices fixed and the government on the hook for higher wholesale costs, Britain’s privatised power industry is operating in anything but a free market.
The acquisition, approved by the Department for Business, Energy & Industrial Strategy in October, closed just before midnight on Dec. 20 despite a legal challenge by rival suppliers E.ON, British Gas and Scottish Power. The extent of government support to Bulb could eventually be less than 4.5 billion pounds, depending on energy prices, the government said in a notice published on Dec. 20.Editing by Peter Thal Larsen and Streisand NetoOpinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
The energy they could save by turning off half the stores/shops lights at night
Nationalise ALL Utilities Today
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