UK Energy Firms to Be 'Hauled in' by Government Over Deepening Energy Crisis

Sanctions and embargoes on Russian energy imports by Western states since the start of the demilitarization and de-Nazification operation in Ukraine have sent natural gas prices soaring to record levels — yielding huge profits for energy-producing companies.
Sputnik
The heads of Britain's big energy firms have been summoned for a showdown with government ministers over soaring profits as families struggle to pay bills.
Education Secretary James Cleverly said Chancellor of the Exchequer Nadhim Zahawi and Business, Energy and Industrial Strategy Secretary Kwasi Kwarteng would meet with executives to "hold them to account" over their "unexpected profits."
"The chancellor and the business secretary have hauled in the leaders of the energy companies to hold them to account," Cleverly told Sky News on Wednesday morning.
The two ministers will "discuss with them what they are going to do with these unexpected, unplanned, unprecedented profits that they have been making because of that sudden spike in energy prices caused by Russia's invasion of Ukraine."
Sanctions and embargoes on Russian energy imports by Western states since the start of the Ukraine conflict have sent natural gas prices soaring to record levels.
Former chancellor and Tory leadership contestant Rishi Sunak conceded to opposition Labour Party demands for a 'windfall tax' on energy firms' profits to pay for aid to households. But former Labour Prime Minister Gordon Brown called this week for a range of emergency reactions to the crisis.
Pressed on whether there could be scheduled power cuts this winter to save energy (something not seen in the UK since the 1970s), Cleverly said that the government was making plans but was at the mercy of the "global marketplace" for energy but insisted that the UK was in a "better position than many in terms of our domestic energy production."
The UK sources around half of its natural gas needs for heating, cooking and electricity generation from undersea fields in its North Sea exclusive economic zone — but the corporations who own the drilling platforms are free to sell it abroad.
Howevver, the minister pledged that school, colleges and universities would be kept heated over the winter months.
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Meanwhile, the founder of one of the UK's many private home energy billing companies called on the government to more than double its support payments to households — to cover the cost of price hikes levied by suppliers and intermediaries like his own firm.
Octopus Energy CEO Greg Jackson told BBC Radio 4's Today program that the existing £16 billion package "was right previously" but was "clearly it’s not sufficient now" — urging the treasury to provide another £500 per household.
"The last support package was really significant. It’s just that the crisis has deepened since then, and that’s why it needs revisiting," Jackson said. "We just know that the level of increases is going to be unmanageable for so many without the right support from the Government".
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