The shortage warning serves as an “alarmist.” His statement came at a time when smaller utility companies were struggling to make ends meet, because rising natural gas prices prevented price promises from being fulfilled. 4 High demand for natural gas and reduced supply led to overall sales The reason for the price increase.
The energy price cap protects customers from sudden increases in natural gas wholesale prices. The energy price cap is the highest price they can charge for standard tariffs. However, the cap means that energy companies cannot pass on higher wholesale costs to their customers, forcing some smaller companies to close down. So far, four energy companies have hit a wall, and four companies will follow up in the next few days.
On Sunday, Bulb, the sixth largest energy company in the UK,announced that its goal is to implement a rescue package. The government stated that it is considering providing government-backed emergency loans to surviving energy companies to encourage them to accept customers from bankrupt companies.