HM Treasury and Bank of England to launch the Energy Markets Financing Scheme (EMFS)
HM Treasury, working with the Bank of England, will launch the Energy Markets Financing Scheme (EMFS).
HM Treasury are today announcing a joint scheme, working with the Bank of England, to address the extraordinary liquidity requirements faced by energy firms operating in UK wholesale gas and/or electricity markets. This will provide resilience to both energy and financial markets, and the economy, and reduce the eventual cost for businesses and consumers.
Prices have recently been high and volatile. As a result, large amounts of collateral are required to enter into contracts firms use to effectively insure themselves from price fluctuations, or otherwise firms must accept large credit exposures to their counterparties.
The EMFS will enable short term financial support to wholesale firms. Further details of the scheme will be announced in due course. The scheme will be designed to be used as a last resort and will be structured and priced accordingly. It will be open to firms that 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.
There will be a rigorous assessment process, and firms will also have to agree to a wider set of conditions before accessing the scheme. The opening date will be published by the end of October or sooner.
Latest News from
Government joins with households to help millions reduce their energy bills28/11/2022 15:22:00
New measures set to help hundreds of thousands better insulate their homes and reduce consumption while saving families hundreds of pounds each year.
Agreement with Singapore opens new fintech market for UK businesses25/11/2022 16:10:00
The UK and Singapore have agreed a new MoU boosting fintech trade and cooperation at their 7th Financial Dialogue in Singapore today (25 November).
UK and Singapore deepen collaboration in FinTech and strengthen financial cooperation25/11/2022 11:10:00
HM Treasury and Monetary Authority of Singapore joint statement on the seventh meeting of the UK-Singapore Financial Dialogue.
Autumn Finance Bill 2022 published23/11/2022 09:15:00
The Autumn Finance Bill 2022 was published yesterday (22 November 2023), legislating for a key tax changes announced by the Chancellor at last week’s Autumn Statement.
Welsh Secretary responds to Chancellor's Autumn Statement22/11/2022 13:15:00
David TC Davies says the UK Government is committed to tackling inflation, creating economic stability and targeting help to those who need it most.
The Autumn Statement 2022 speech17/11/2022 14:10:00
The Autumn Statement 2022 speech as delivered by Chancellor Jeremy Hunt.
Chancellor delivers plan for stability, growth and public services17/11/2022 13:05:00
The Chancellor has today (Thursday 17th November) announced his Autumn Statement, aiming to restore stability to the economy, protect high-quality public services and build long-term prosperity for the United Kingdom.
Scottish Secretary comments on November 2022 Labour Market stats15/11/2022 12:14:00
Alister Jack says focus must remain on growing the economy in the face of global challenges for the good of people in Scotland and all over the UK.