The UK’s biggest energy provider of gas to companies is evaluating a change of name to distance the brand from Russia. After Russia’s invasion of Ukraine, the energy business, based in Manchester, have a task to decide on a new name.
Over 20% of the gas that is used by UK businesses comes from the firm and to increase its chance of survival, a subtle rebrand may be required. One of the names suggested is the name of its UK parent, GM&T.
Back in March, an imminent collapse was almost a certainty for Gazprom Energy, with companies turning away from new contracts. There were fears that there could be sharp price surges for the 30,000 corporate customers’ bills due to cheap contracts negotiated years before wholesale prices began to soar last summer.
With the business finding it increasingly difficult to find a buyer, the government had to step in, placing the firm into special administration that would allow the energy supplier to continue supplying its customers.
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Ministers in the UK believed there could have been a £4bn cost to taxpayers, with the combination of the special administration, as well as honouring customers’ low-cost contracts increasing the total costs.
However, the risks involved were massive, as by allowing the company to fail, it may have led to numerous other businesses going bust and creating more devastation to the energy market, in addition, to blame being placed on the government.
Meanwhile, over in Germany, Gazprom Germania, a trading, storage and transmission business was temporarily taken over by the German government and therefore secured its immediate future.
Until September 30th, the Federal Network Agency, Germany’s national energy regulator was made a trustee of the company. Effectively, this takeover ensures that Gazprom Energy’s future is in the hands of Berlin.
Berlin has denied Gazprom Energy from taking on new customers, resulting in many key staff members departing. Some from the Manchester office, home to around 270 employees have left, in addition to 15 staff recently leaving the business.
With different subsidiaries of Gazprom all doing different services around the globe, it is crucial to keep on top of the situation. For example, Gazprom Germania supplies wholesalers and retailers and is a vital component in the European energy market.
Some of the locations of subsidiaries include:
The United Kingdom
Mexico
Switzerland
Belgium
Singapore
Czech Republic
Germany
Just this month there were amendments to key energy laws by the German parliament. Now, to secure energy supplies in the event of an emergency, the government has permission to seize ownership of energy companies.