Energy suppliers: Could there be a ‘big six’ bailout?
First the banks... could energy suppliers also receive bailouts from the government?
The memory of what happened when the banks went bust is still fresh in taxpayers minds, but what if one of the ‘big six’ energy suppliers went out of business?
The government is putting together contingency plans in case of just such an eventuality.
At present the costs would be absorbed by the rest of the industry, but the government doesn’t believe these safeguards are strong enough.
One solution under consideration could see bills go up by between £7 and £32 a year on average leading to a maximum contribution of £4bn.
But, speaking to the Telegraph, a government official said: “It is extremely unlikely that any of the large energy suppliers in the UK would become insolvent.
“None the less, the Government believes that it is prudent to have in place a framework that will ensure the continued operation of a major supplier until its customers can be transferred to other partners.”