A scheme designed to help UK energy companies and financial markets dealing with the effects of high and volatile energy prices will be launched in the autumn.
The Government has announced a new scheme to address the liquidity requirements faced by energy firms operating in the UK’s wholesale gas and electricity markets. HM Treasury, working with the Bank of England, will launch the Energy Markets Financing Scheme (EMFS) later this year.
The scheme is expected to provide resilience to energy and financial markets, and the economy, reducing the eventual cost for businesses and consumers.
The Government recognises that prices have recently been high and volatile, resulting in large amounts of collateral being required to enter into contracts which companies use to effectively insure themselves from price fluctuations.
The EMFS is expected to afford short-term financial support to wholesale firms. Those which can prove that they are otherwise in sound financial health, have a UK presence, and play a significant role in UK electricity or gas markets will qualify.
The scheme will be designed to be used as a last resort and the Government says it will be structured and priced accordingly. Further details will be announced in due course.
The opening date is expected to be published by the end of October 2022 or sooner.
How To Apply
Further details will be announced in due course.
The opening date is expected to be published by the end of October 2022 or sooner.