A City firm has been put on standby to take control of a large energy company amid fears that one could collapse soon, overwhelming the existing safety net put in place by the regulator, Ofgem. The management consulting company Teneo is understood to have held talks with the regulator about acting as “special administrator” under a government scheme, as yet untested, for handling large energy company failures. In theory, the company would take on the operations of a failed energy supplier to ensure no interruption of service or supply to customers. The backup option, first reported by Sky News, is being readied in light of mounting concern that Ofgem’s “Supplier of Last Resort” system, under which a healthy energy supplier agrees to take on customers from a collapsed rival, is at breaking point.
Guardian 30th Sept 2021 read more »
The energy regulator has hired a City firm to act as special administrator in case a leading supplier needs to be rescued. Ofgem has put advisers at Teneo on standby after the collapse of nine energy suppliers serving more than 1.7 million households in the past month. Supply concerns have mounted following the collapse of Igloo Energy, Symbio Energy and Enstroga on Wednesday. Forecasts of cold weather have also raised the alarm with the winter gas season, when demand for heating rises, officially starting today. The price of natural gas in Britain rose to another high yesterday as October contracts rose above 238p per therm. The day-ahead contract was 26p higher at 204p per therm. European natural gas and power prices also hit fresh records.
Times 1st Oct 2021 read more »