UK energy suppliers warn they cannot absorb rivals’ customers without rescue. Britain’s largest energy retailer warns that suppliers may refuse to absorb failed rival customers unless the government returns to negotiate relief packages, avoiding sector intervention. This week, business secretary Kwasi Kwaten canceled the sector deal after urgent talks to deal with the number of suppliers that collapsed due to record wholesale prices. Bill Bullen, CEO of Utilita, which has about 800,000 customers, said the amount of money needed to take on a failed supplier’s customers is so great that only the largest companies can participate.
FT 25th Sept 2021 read more »
Regulating the dwindling band of energy suppliers takes myriad skills. But keeping up with their Companies House filings must be one of them. So how, you wonder, did Ofgem react to this wheeze from Avro Energy, the supplier that went bust this week, forcing a rescue for its 580,000 customers? On June 28, the company, co-owned by its 27-year- old boss Jake Brown and his dad Andrew, “shortened” its “previous accounting period” by one day — from June 30 to June 29, 2020. Why would it do that? Simple. As Companies House explains: “If a company shortens the accounting reference period, the filing deadline will be either nine months from the new year end, or three months from the notice — whichever expires last.” So, instead of having to file its accounts by June 30, Avro pushed the date back to September 28.
Times 25th Sept 2021 read more »
Every household in Britain could end up forking out nearly £100 more a year for their energy bills on top of already rising costs to pay for failing companies. Energy firms have been hit by a perfect storm of soaring wholesale energy prices and a price cap that limits what they can charge customers. In an industry with low margins that is dominated by loss-making companies, there are growing fears of a wide-scale collapse. There are fears that the number of energy suppliers in the UK could shrink from 39 to 10 by this time next year, and if this happens, household bills could go up £95, according to the Energy Shop, a comparison site.
Times 24th Sept 2021 read more »