UK may offer loans to energy companies after gas price soars – BBC

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Britain is considering offering state-backed loans to energy firms after wholesale gas prices soared, the BBC reported on Monday.

A jump in gas prices has already forced several domestic energy suppliers out of business and has shut fertiliser plants that also produce carbon dioxide, used to stun animals before slaughter and prolong the shelf-life of food.

Wholesale gas prices have risen by 250% since January after a cold winter put pressure on Europe’s supplies, running down levels of stored gas.

Increased competition for liquefied natural gas, particularly from countries in Asia which also experienced cold weather, has added to the pressure on prices.

Boris Johnson, who is in New York for a UN General Assembly meeting, told reporters: “We’ve got to try and fix it as fast as we can, make sure that we have the supplies that we want, make sure that we don’t allow the companies we rely on to go under.

“We’ll have to do everything we can, but this will get better as the market starts to sort itself out as the world economy gets back on its feet.”

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