REUTERS
Shell injects $1.5 bln into UK retail power business to help it weather volatility
Reuters: Ron Bousso: Dec 08, 2022
LONDON — Shell has injected nearly $1.5 billion into its British energy retail business this year to help it weather huge volatility in power prices that caused the collapse of several rival UK power utilities, Shell Energy said in a filing on Thursday.
Britain’s power utilities have been rocked by huge fluctuations in energy prices since the end of 2021 due to a shortage in natural gas supplies, which was exacerbated after Russia sharply reduced supplies to Europe following its invasion of Ukraine in February.
Shell Energy’s operating loss rose to 102.4 million pounds in 2021 from 83.6 million pounds a year earlier, according to the company’s financial results, released on Thursday.
The loss was “principally driven by market conditions. In particular, the unprecedented rise in energy prices in the latter part of 2021 adversely impacted financial performance, including increased costs as a result of supplier failures in the market and the inability to pass on higher energy costs,” according to the results filing.