U.K. energy companies seek government bailout after surge in gas and electric prices

Bloomberg - - U.K. energy companies are seeking a massive government bailout as a surge in gas and electric prices threatens to push small unhedged suppliers out of business, most notably the one in London.

After emergency talks Monday morning, Business Secretary Kwasi Kwarteng meets industry bosses local time on the early afternoon of Monday. Time is pressing, as the CEO of one energy supplier warned it might not survive the winter without government help.

The U.K. s usual mechanism for dealing with surviving suppliers - whereby customers are transferred to a failed company - may not work this time, as rising market prices make it unprofitable for a company to take more clients

In LondonCentrica Plc shares are seeking a bailout from the government to help them handle the cost of taking on in failed suppliers customersKwarteng to meet energy firms at around 12: 30 p.m. in LondonCentro Plc shares fall

The Green Initiative says it will not survive winter 8: 30 a.m. London Green, a small energy supplier, says it may not survive the winter without government help.

Without any support methods being put in place from the government is unlikely that we will see the winter through, chief executive officer Peter McGirr told BBC.

The company serves more than 250,000 homes in India.

RBC estimates bills could jump as much as 400 pounds $547 a year because of surging prices.

The power suppliers are now facing critical pressure on rising commodity prices, RBC said in a note. We see heightened risk for smaller, less well hedged energy suppliers to face bankruptcy in the event of this crisis; however, we are mixed on if this presents a positive longer term opportunity for larger energy suppliers in the U.K., such as Centrica. Centrica shares fell as much as 1.9%.