Natural gas prices are around six times higher than a year ago, putting a premium on electricity during an autumn when calm weather has reduced renewable generation.
Government sources say ministers believe the warnings are stark and credible, and not simply special pleading on behalf of businesses under pressure. The key calculation is that those asking were competitive self-sufficient businesses until a month ago, when the price spike skewered their financial model.Quite what to do about it is a more complex and costly question, which may explain the embarrassing and remarkable weekend spat between Kwasi Kwarteng and Rishi Sunak.
But it also wants the Treasury to address additional costs, many of them climate-related, that it says makes energy costs for British companies 80% more expensive than German competitors. With the UK hosting the COP26 climate summit in three weeks' time and the government committed to a transition to renewable energy, it seems fanciful to think Mr Sunak - or the prime minister watching from a Spanish sunbed - will agree to fundamental reform of carbon-related costs.
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