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U.K. Energy Suppliers May Face Stricter Rules Following Crisis

  • Capital requirements for suppliers may be tightened: regulator
  • Scrutiny comes after 23 suppliers collapsed during the crisis
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The U.K.’s energy regulator said it may impose stricter capital requirements for gas and power suppliers after almost two dozen companies collapsed since August in the wake of soaring prices.

The surge in wholesale rates to levels almost four times higher than usual for this time of year has wreaked havoc on the energy retail sector. Many of those going out of business were partially or totally unhedged, leaving them vulnerable when prices increased dramatically.