UK households get £280m bill as energy suppliers collapse

THE UK’s largest electricity distribution business said a hit of £280 million (S$467 million) from energy companies failing will be passed on to customers. 

UK Power Networks has received the claims under the so-called supplier of last resort scheme — a regulatory plan that ensures domestic supply is not interrupted when suppliers fail.

The value of such claims till Mar 31 this year was approximately £280 million, according to its annual accounts. It has agreed with regulator Ofgem that the majority will be payable and recovered from customers through higher tariffs. 

The soaring volatility in energy markets that began in late 2021 has seen a wave of supplier failures in the UK. The news was first reported by the Times of London. BLOOMBERG