Energy supplier Scottish Power has hit out at “unsustainable” pricing among smaller rivals and called on regulators to protect payments made by customers in advance. More than 20 small to mid-sized energy companies have collapsed since September 2018, with several owing millions of pounds to customers for energy not yet delivered, as well as other industry payments. Under regulator Ofgem’s procedures for supplier failure, a rival company is appointed to pick up failed suppliers’ customers and pay them back, and can then recoup the costs from the rest of the industry. Scottish Power was appointed to take on Extra Energy’s 129,000 domestic and business customers when the latter collapsed in November 2018. It is now applying to Ofgem for £6.5m to help cover remaining customer credit balances, after funding the first £10m.
Telegraph 1st Jan 2021 read more »