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U.K. Won’t Bail Out Failed Companies Amid Crisis: Power Update

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The U.K. won’t bail out failed companies, and the government expects to see some businesses go bankrupt in the coming weeks, Business Secretary Kwasi Kwarteng warned, as gas prices marked new records.

The government -- which held emergency talks with energy bosses through the weekend -- has been considering how to prevent chaos in the system as small, unhedged companies risk going under. It’s been discussing how to help bigger companies absorb the customers of failed suppliers, with loans among options being discussed, according to people familiar with the matter. With wholesale prices at records, companies are reluctant to take on new customers without government support.