The head of trade body Energy UK Emma Pinchbeck said earlier that the sector had been fragile for a couple of years and the current gas crisis had exposed fault-lines in the market. joker wallet
She said: "There's a short-term crisis here, which is in some ways out of our control - it's to do with the gas prices - but it's been exacerbated and arguably caused by our regulatory design."
Wholesale gas prices have spiked as economies reopened from Covid-19 lockdowns and high demand for liquefied natural gas in Asia pushed down supplies to Europe.
The surge in demand has sent shockwaves through industries reliant on natural gas.
On Tuesday, the government agreed to pay out tens of millions of pounds to US fertiliser firm CF Industries to restart carbon dioxide production. Its shutdown, due to high energy costs, had sparked concerns over food shortages.
Carbon dioxide, a by-product of fertiliser manufacturing, is used to stun animals, in fizzy drinks, and in food packaging.
In the energy market, small providers that had launched in recent years had been hit by the jump in costs even before the recent spike. From more than 70 suppliers in 2018, there are just over 30 now.
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