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Started by mikeshadow on Sep 20, 2021 2:15:07 AM
Energy Crisis: largest energy companies request government support

The largest energy companies may not be able to absorb the cost of taking on millions of customers from the expected number of failed smaller suppliers.

Most household bills are not enough to cover the cost of supplying new customers, making large energy companies extremely reluctant to take them on without government support, potentially including state-backed loans or other measures.

Three options currently being considered:

1. Formation of a “bad bank” which would take on loss making customers from failed suppliers

2. Government underwrite debt for the larger suppliers, if they were to incur losses by taking on failed suppliers’ customers

3. Ofgem step in and effectively nationalise failed suppliers, with the government responsible for any losses

https://www.google.com/amp/s/amp.ft.com/content/68
4e4ef1-87a9-4bdf-96f4-956df4e0a1e2

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dottie30 - 20 Sep 2021 09:01:14 (#1 of 286)

Thank goodness we're in a single market which means we can avail of a pooled supply of gas from countries like Norway and the Netherlands through the internal energy market; rather than relying solely on Russia hey? Phew - could have got dicey if we weren't in it.

Oh shit.

bailliegillies - 20 Sep 2021 09:12:23 (#2 of 286)

Maggie's private is best coming home to roost.

Ginmonkey - 20 Sep 2021 09:17:11 (#3 of 286)

A state controlled energy supplier would have the same price and supply constraint issues.

The issue right now is that if too many small suppliers go under it will be challenging for suppliers picked under the SOLR regime. The question is whether government provide incentives or go with something like directly operated rail and serve these orphaned customers themselves.

Ginmonkey - 20 Sep 2021 09:19:43 (#4 of 286)

#1 As far as I understand it the Langled interconnecter is still operational and used regardless of Brexit. The gas shortages are affecting all of Europe but we are facing a particular crunch due to the recent UK/France interconnector fire and gas generation having to replace some unexpectedly offline nukes.

bossab2 - 20 Sep 2021 09:22:50 (#5 of 286)

Where Britain has fucked up is not replacing the old nukes.

They've been patching the existing ones up for decades.

GyratingTrampoline - 20 Sep 2021 09:30:13 (#6 of 286)

Everyone's assuming that the govt must do whatever it takes to ensure that everyone has 'continuity of supply', but maybe this is just the market trying to solve climate change via its infinite and unquestionable wisdom, and we should sit back and let nature take its course

quattrobhoy - 20 Sep 2021 10:46:12 (#7 of 286)

"Market forces" will prevail, except where electoral considerations have great significance, or Tory pals can benefit.

Ginmonkey - 20 Sep 2021 10:48:01 (#8 of 286)

Energy is one where market forces never fully prevail - there have been long standing arrangements in place where if a supplier fails customers do not suffer disruption. The current issue is that so many small suppliers are expected to fail in a short period of time those arrangements may well be put under intolerable strain.

Kucinghitam - 20 Sep 2021 09:51:01 (#9 of 286)

Hmm. Looks like our provider might cark it soon.

StakludKar - 20 Sep 2021 11:00:09 (#10 of 286)

In extremis, I suppose they could resort to incinerating landfill for electricity like they used to before the Clean Air Act

bossab2 - 20 Sep 2021 11:01:55 (#11 of 286)

Good job they left some of the coal stations functioning.

rearranged - 20 Sep 2021 11:02:10 (#12 of 286)

Where Britain has fucked up is not replacing the old nukes.

Yes, the coming capacity crunch is hardly unexpected, the existing nuclear power stations were always going to go off line 30-40 years after they were built, but we have had decades of can kicking.

It's 13 years since they decided new plants were needed and they haven't approved the plans for the first yet, and at best it will be another 12 years before it is completed.

Verdigris - 20 Sep 2021 10:07:36 (#13 of 286)

In extremis, I suppose they could resort to incinerating landfill for electricity like they used to before the Clean Air Act



They incinerate for power where I live. Pretty new plant, though, so the dioxins and stuff are cleaned from the flue gases.

Tinymcsmithy - 20 Sep 2021 11:08:51 (#14 of 286)

Nuclear is heavily subsidised.

Ginmonkey - 20 Sep 2021 11:11:23 (#15 of 286)

Indeed it is, but very much needed if we are to make to transition to renewables smoothly.

TheExcession - 20 Sep 2021 11:12:05 (#16 of 286)

They're trying to build a power generating incinerator round here but the NIMBYS don't want it. The site was previously occupied by an iron foundry rather than say: a meadow full of butterflies and kittens.

cozzer - 20 Sep 2021 11:13:59 (#17 of 286)

That's a shame, they could have burnt the kittens.

Atticus - 20 Sep 2021 11:14:36 (#18 of 286)

You get more fuel from adult cats.

tasselhoff - 20 Sep 2021 11:15:43 (#19 of 286)

I think you'll find the larger surface area to volume ratio means kittens burn cleaner.

Tinymcsmithy - 20 Sep 2021 11:24:19 (#20 of 286)

Indeed it is, but very much needed if we are to make to transition to renewables smoothly.



It’s a false prophet and exists largely because of nepotism.

The transition to renewables needs to happen much faster than that.

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