Two energy supply minnows have failed to meet a key payment deadline for the Government’s warm home discount scheme, fuelling growing fears of a financial crunch for small suppliers due to rising costs in the crowded market. Flow Energy and Spark Energy were both expected to pay into an Ofgem-run funding pot, which is backed by a 15-strong group of energy suppliers. The scheme aims to cut up to £140 from energy bills for the most vulnerable customers over the winter, when bills are at their highest. In a letter to the group, seen by The Telegraph, the regulator said two suppliers missed the Dec 11 payment deadline, meaning the rest of the group will need to foot their share of the cost. The group includes major ‘big six’ suppliers as well as smaller energy firms including Ovo Energy, Fi rst Utility, and Utilita. The skipped deadline has reignited concern that the new breed of energy supply minnows may face unsustainable financial strain within the increasingly competitive energy market.
Telegraph 20th Dec 2017 read more »