Covid-19 – UK Energy sector seeks coronavirus support

1 April 2020


Energy companies in the UK have asked the government for financial backing to help them cope with the impacts of the coronavirus impact.

The Financial Times has reported that Energy UK, the sector’s trade association, has approached the government to ask it to back a loan scheme worth up to £100 million/month so that they can offer payment holidays to households and businesses.

Electricity demand and energy prices have dropped since the outbreak of the Covid-19 virus in Europe and the industry is concerned that the added pressure of rising customer debts will further squeeze their financial positions.

Energy UK said on 17 March that the industry is ready to provide “all the help and support it can to its customers through this difficult time” but that the government should “look at providing financial support to energy customers at a time when many households will be struggling to pay for necessities and essential services.”

Fierce competition in the energy retail market in the UK and a government-imposed price cap have squeezed suppliers’ profits. Around 19 energy companies have collapsed since 2016, according to Ofgem.



Linkedin Linkedin   
Privacy Policy
We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.