The UK government hopes to protect businesses and public sector organisations against spiralling energy costs with a package that parallels the price cap and support payments recently promised to households. But these significant interventions come with a large and imprecise price tag that raise serious doubts about the government’s future finances.
By curbing retail electricity and gas prices, the new strategy aims to make energy companies share the cost of keeping energy affordable. The Bank of England has meanwhile extended £40 billion of credit lines to energy companies that were struggling to manage gas price volatility this year.
