U.K. Energy Firms Seek Government Fund to Absorb Stranded Customers
- Suppliers want a working capital fund, not state-backed loans
- Industry is preparing for possible collapse of more suppliers
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The U.K. government is coming under increasing pressure to help large energy suppliers absorb the customers left stranded by failed rivals, with top utilities now calling on the government to create a special fund.
Some of the nation’s largest energy companies have asked the government for working capital to help cover upfront costs estimated at about 1,000 pounds ($1,400) per household, according to people familiar with the discussions. The fund would be a more attractive alternative to state-backed loans, the people said, as it would allow the companies to keep the debt off their balance sheets.