The government directed Teneo to make minimal use of hedging when purchasing energy for Bulb’s customers, except when operational and market conditions required it. During the SAR, Teneo purchased its energy using a combination of day-ahead and week- ahead purchases. We asked HM Treasury if it would use the same approach to hedging if a SAR was needed for a failed supplier in the future or if it would look to make any changes. HM Treasury clarified that Managing Public Money did not prohibit ...

The government directed Teneo to make minimal use of hedging when purchasing energy for Bulb’s customers, except when operational and market conditions required it. During the SAR, Teneo purchased its energy using a combination of day-ahead and week- ahead purchases. We asked HM Treasury if it would use the same approach to hedging if a SAR was needed for a failed supplier in the future or if it would look to make any changes. HM Treasury clarified that Managing Public Money did not prohibit the use of hedging and recognised that hedging may be appropriate under specific circumstances. HM Treasury 24 Q 52 25 Qq 18, 113 26 Q 115; C&AG’s Report Type: conclusion | Number: 16 | Response status: accepted Government response: 6.1 The government agrees with the Committee’s recommendation. Target implementation date: November 2024 6.2 When companies are reclassified to the public sector from the private sector, and if classified to central government, they will be bound by existing guidance