UK energy firms have been feeling the pressure this week as soaring wholesale gas prices triggered panic in the newspapers and beyond.
Rising costs have already led to the collapse of seven small energy suppliers since the start of August, and dozens more are at risk of going out of business.
On Wednesday, Avro Energy and Green became the two largest companies to close, forcing more than 835,000 customers to switch to a new supplier. Meanwhile, the UK’s sixth largest energy supplier, Bulb, was reportedly seeking a government bail-out to stay afloat.
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Business Secretary Kwasi Kwarteng told MPs this week that the government was considering following Spain by introducing a windfall tax on firms that have benefited from rising wholesale gas prices while customers and energy suppliers are struggling.
In other uncomfortable news for the government, Joe Biden played down the chances of a UK-US free trade deal after private talks with Boris Johnson at the White House on Wednesday.
Johnson once promised that the UK would be “first in line” for a free trade deal with the US once the UK had left the EU. But when asked about the possibility of a UK-US free trade agreement ahead of face-to-face talks with Johnson at the White House, Joe Biden said: “We’re going to talk about trade a little bit today and we’re gonna have to work that through.”
Need a reminder of some of the other headlines over the past seven days?
- The possible collapse of the beleaguered Evergrande Group is rattling financial markets worldwide, with some analysts warning that China may be about to face its “Lehman Brothers moment”.
- Dozens of Insulate Britain campaigners have been arrested during days of protests that have seen activists gluing themselves to the M25 and other motorways during rush hours. They are protesting the government’s lack of action on insulating UK homes.
- Animal rescue mission Operation Ark, which flew 170 cats and dogs out from Afghanistan as Kabul fell to the Taliban, is having its funding arrangements examined by the Charity Commission.
