The Treasury and the Bank of England have launched the £40 billion Energy Markets Financing Scheme, which was announced by the government in September and is intended to provide liquidity to energy companies facing large margin calls on their hedging activity as a result of volatility in wholesale markets. The terms and conditions include minimum thresholds for company size and credit ratings, a bar on the payment of dividends and bonuses, and a requirement for firms to submit their plans for transitioning to net zero.
Energy firms using £40bn loan scheme barred from issuing dividends
