The UK’s biggest electricity distribution company said a £280million hit from energy companies going bankrupt would be passed on to customers.
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(Bloomberg) – The UK’s biggest electricity distribution company has said a £280million hit from the bankruptcy of energy companies will be passed on to customers.
UK Power Networks Ltd received the claims under the so-called supplier of last resort scheme – a regulatory scheme which ensures national supply is not interrupted if suppliers default.
The value of those claims up to March 31 this year was around £280m, 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 increasing volatility in energy markets that began in late 2021 has led to a wave of supplier failures in the UK. The news was first reported by The Times of London.