Energy suppliers risk going bankrupt as customers default on payments. As jobless numbers and benefit claims soar due to Covid-19, one supplier says it has seen payment cancellations increase by 300pc. In recent years, pressure has been building in the UK’s energy sector. Many suppliers have adopted a muscular approach to winning new customers: charge as little and scale up as quickly as possible. But this risky strategy has left a number of companies with virtually no safety net, according to public financial records and interviews conducted with industry executives. There is now growing concern among energy suppliers that vulnerable customers will not be able to pay for their gas and electricity in coming months if they are unable to return to work due to Covid-19. A number of suppliers have already seen some customers cancel direct debits – an early indication that they are struggling to make payments.
Telegraph 14th April 2020 read more »