UK’s largest electricity distribution company said that a £280 million hit from energy companies going under will be passed on to customers.
UK Power Networks Ltd received the claims under the supplier of last resort scheme. This regulatory plan ensures that domestic supply doesn’t get interrupted when suppliers fail.
According to the accounts, the value of such claims up to March 31st was around £280 million. It has reached an agreement with Ofgem to pay the majority and recover it from customers by increasing tariffs.
Due to the soaring volatility of energy markets, which began in late 2021, there has been a wave of supplier failures in the UK. The Times of London first reported the news.
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