BREAKING #gascrisis
@BBCNewsnight has seen a letter from gas shipper CNG - which is exiting the wholesale market - to struggling domestic energy supplier firms saying that have only until 30 November to find a new shipper...
@BBCNewsnight has seen a letter from gas shipper CNG - which is exiting the wholesale market - to struggling domestic energy supplier firms saying that have only until 30 November to find a new shipper...
...The letter also confirms these domestic supplier firms will NOT be able to transfer any hedges they have with CNG against soaring wholesale gas prices to a new shipper...
...“I am sorry to advise you that hedges are deemed to be an asset of CNG’s wholesale shipping business and must therefore be ring fenced for the benefit of creditors generally. The cannot be novated nor the value of these hedges transferred.”...
...“I realise the implications for a supplier trying to find a new shipping arrangement in this challenging market with no hedges in place”...
...What does this mean?
A domestic supplier firm I have spoken to, which had hedges with CNG, says it now has "nowhere to turn" and will likely have to exit the market and transfer customers to the OFGEM supplier of last resort process..
A domestic supplier firm I have spoken to, which had hedges with CNG, says it now has "nowhere to turn" and will likely have to exit the market and transfer customers to the OFGEM supplier of last resort process..
...without hedges the price they will have to pay for new wholesale gas contracts with a new shipper to service their existing customers will be unbearable given the government's price cap on consumer bills..
...possibly 10-14 more domestic suppliers serviced by CNG are in the same situation.
In short: expect a further swath of domestic supplier failures between now and the end of next month
In short: expect a further swath of domestic supplier failures between now and the end of next month
More on CNG here:
https://twitter.com/BenChu_/status/1448343656163852290?s=20
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