EDF has been selected as the Supplier of Last Resort for Utility Point’s 220,000 domestic customers after the latter collapsed last week. Ofgem announced the French energy giant had been chosen following a competitive process to find the best deal possible for the customers.
Current 20th Sept 2021 read more »
Britain’s energy woes catch vulnerable sector in perfect storm. Peter McGirr wanted to modernize the UK consumer energy market when he founded Green three years ago and built a customer base of more than 250,000 households. Today, the sector is collapsing, and it is “incredibly unlikely” that Newcastle-based suppliers will survive until Christmas without government intervention, he says. In the last 6 weeks, 5 small suppliers have collapsed and 4 or 5 more have collapsed. Will participate in them In the next 10 days when the industry is hit Unprecedented rise in wholesale electricity and gas prices. Observers predict that 10 suppliers will survive the winter, suggesting that 40 could go bankrupt. Some executives personally suggest that the sector could return to large companies in 4, 5, and 6.
FT 20th Sept 2021 read more »
The price cap on energy bills risks pushing smaller energy suppliers out of business, experts have warned, adding to the pressure on consumers it is designed to protect. Yesterday Kwasi Kwarteng, the Business Secretary, insisted the cap would remain in place despite suppliers grappling with soaring record wholesale energy prices. Four suppliers have collapsed over the past two weeks, with four more believed to be on the brink and concerns that others could follow, affecting potentially millions of households. Customers whose supplier has collapsed are passed onto a new supplier by Ofgem, the regulator, or can switch supplier – but in the current climate their new deal is likely to be more expensive.
Telegraph 21st Sept 2021 read more »
Energy price rises: Dozens of energy firms will be left to collapse. Millions of households face higher gas and electricity prices after the government said that it would not bail out energy companies on the brink of going into administration. Kwasi Kwarteng, the business secretary, said that there was “absolutely no question of the lights going out” but insisted that there would be “no rewards for failure or mismanagement”. Ministers are instead considering underwriting billions of pounds in loans to cover the cost of companies taking customers from those that go bust. Suppliers that take these customers are expected to charge them the maximum allowed under the energy price cap at £1,277 a year for a typical household.
Times 21st Sept 2021 read more »
Much more of this and we’ll be back to some new-fangled Big Six. Look how competition’s going in the gas and ‘leccy markets: so well that most of the new players look set to blow their financial fuse. Yes, soaraway gas prices may turn out to be as “short-term”, as Boris Johnson insists: “A function of the world economy waking up after Covid”. Having President Putin stir things up by restricting gas supply hardly helps. And the foundations of this crisis are myriad, everything from 2017’s closure of the Rough gas storage facility to the endless ministerial failures to develop a proper UK energy policy. But the latest chaos shows something else too: a regulator asleep at the switch. What has Ofgem been up to? Sure, it’s not its fault that a Tory government landed it with price caps, largely nicked from Ed Miliband, that are making a bad situation worse. But what sort of regulator encourages millions of consumers to move their accounts to upstart energy suppliers that keel over the minute prices get hot?
Times 21st Sept 2021 read more »