London Daily

Focus on the big picture.
Thursday, Nov 13, 2025

Ministers preparing for 'worst-case scenario' of persistently high gas costs beyond 'short spike'

Ministers preparing for 'worst-case scenario' of persistently high gas costs beyond 'short spike'

Speaking to Kay Burley on Sky News, business minister Paul Scully says high wholesale gas costs are placing "pressure" on the energy price cap.

The government is preparing for the "worst-case scenario" of gas costs continuing to stay high beyond a "short spike", a minister has told Sky News, as Labour said the government has been "far too complacent" about the crisis.

Speaking to Kay Burley, Paul Scully said high wholesale gas costs were placing "pressure" on the energy price cap.

Asked what the worst-case scenario was for a rise in the level of the cap, the business minister replied: "This is all part of the conversations that Ofgem will set that cap at, because supply prices are based on a number of factors.

"Clearly, as a government, we need to make sure we are planning for the worst-case scenario because we want to make sure we can protect consumers."

Pushed on what a worst-case scenario could entail, Mr Scully said: "That it goes on for longer than a short spike. I can't give you a figure now."

Two suppliers have also taken steps to deter new customers from joining.

Bulb has scrapped its popular refer a friend scheme, while Ovo has changed its website to remove a function that allowed customers to "get an energy quote in under two minutes".

Meanwhile, Labour's shadow business secretary Ed Miliband said recent events are "far from normal", with "8,000 customers losing their suppliers yesterday alone, 1.5 million in the last six weeks".

He told MPs: "We are seven days from the cut to Universal Credit. This is the last time a government minister will be in the House to explain to millions of families why it is plunging them further into fuel poverty.

"Instead of warm words or platitudes, can he now tell the British people how he can possibly justify this attack on their living standards?"

Responding to Labour's urgent question in the Commons, Business Secretary Kwasi Kwarteng said: "The solution to this crisis will be found from the industry and the market, as is already happening, and the government - I repeat - will not be bailing out failed energy companies."

Mr Scully's comments are in contrast to remarks from Boris Johnson to Sky News earlier this week.

The prime minister told Sky News political editor Beth Rigby that Britain's energy crisis was a "short-term problem".

Soaring global gas prices have thrown the industry into crisis, with six firms folding this month: PfP Energy, MoneyPlus Energy, Utility Point, People's Energy, Green and Avro Energy.

There are fears that more could follow, with Bulb and Igloo reportedly on the brink of collapse.

There are now roughly 40 suppliers in the UK market, sharply down from a peak of 70 in 2018.

The chief executive of Ofgem has warned that rising gas prices may not be temporary and more supplies could go out of business in the coming months.

Jonathan Brearley told MPs that "well above" hundreds of thousands of customers could be affected.

The energy price cap is set to rise from next Friday to £1,227, a record level.

Wholesale prices for gas have increased 250% since the start of the year, and there has been a 70% rise since August.

Consumers are protected from sudden price hikes by the price cap, but this puts pressure on suppliers as they cannot pass on the increase in wholesale gas prices to customers.

The rise has been put down to a number of factors, including a cold winter leaving stocks depleted, high demand for liquefied natural gas from Asia and a drop in supplies from Russia.

The energy crisis is having a knock-on effect in other areas, with rising gas prices affecting carbon dioxide production.

Ministers have struck a deal with American company CF Industries, which produces around 60% of the UK's CO2 supply, to provide "limited financial support" towards the firm's running costs for three weeks to help it restart production.

The closure of its two sites last week had prompted fears that shoppers could start noticing shortages in poultry, pork and bakery products within days.

CO2 is injected into the packaging of perishable foods such as meat and salads to inhibit the growth of bacteria, typically prolonging the shelf life of products such as beef steak by around five days.

The gas is also used to stun animals prior to slaughter, and is deployed as a coolant for medicines and vaccines in the NHS, and likewise in nuclear programmes.

A director at a second major carbon dioxide producer has has said it could back online within days

Teesside-based company Ensus' biofuels plant has the potential to supply around 40% of the UK's demand for CO2 but it has been on an annual shutdown as part of routine maintenance.

Grant Pearson said the shutdown had been planned six months ago and the switch-on next week remains on schedule.

Speaking to Sky News, Iceland's managing director said the UK has to become less reliant on gas by using a "broader energy mix" to prevent shortages.

Richard Walker said: "I think we've now got to think longer-term. This loan is only three weeks: what happens after that, or what happens the next time the gas prices spike?"

Newsletter

Related Articles

0:00
0:00
Close
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
×