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Energy supplier has went bust


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Dirty Deeds
36 minutes ago, Jambo-Jimbo said:

 

Don't see many other alternatives the government have.

 

The option was to remove the price cap in August. 

 

That would have saved suppliers and jobs but was politically unpopular. 

 

Instead we'll all have a whacking great price increase in April next year to pay for the mess.

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Japan Jambo
53 minutes ago, Jambo-Jimbo said:

 

Don't see many other alternatives the government have.

 

 

agree, but that it's necessary in the first place is down to a failure in regulation and tampering with the market.

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Jambo-Jimbo
1 hour ago, Dirty Deeds said:

The option was to remove the price cap in August. 

 

That would have saved suppliers and jobs but was politically unpopular. 

 

Instead we'll all have a whacking great price increase in April next year to pay for the mess.

 

And have tens of thousands of families having their energy cut off in the winter, when their bills went through the roof and they couldn't afford to pay the huge increases which would have followed.  The price cap is there to help prevent such a situation from happening, recent events have shown that it's not ideal, but for many of the poorest families it's all that stands between them and having extortionate energy bills being thrust upon them.

 

The ongoing increases in the wholesale energy markets, show that there are no easy fixes here, and you are correct that everyone of us will be paying substanially more for our energy in the future, but I do think that will be more down to wholesale prices, rather than to sort out this mess.

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Jambo-Jimbo
1 hour ago, Japan Jambo said:

 

agree, but that it's necessary in the first place is down to a failure in regulation and tampering with the market.

 

Yip, there will have to be a shake-up in the market, so as to prevent a repeat.

Moving forwards they could make companies have to put aside x amount into a scheme, similar to ABTA/ATOL sort of thing, to act as a buffer in case the wholesale price suddenly rockets, I don't know, but something has to change.

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Dirty Deeds
1 minute ago, Jambo-Jimbo said:

 

And have tens of thousands of families having their energy cut off in the winter, when their bills went through the roof and they couldn't afford to pay the huge increases which would have followed.  The price cap is there to help prevent such a situation from happening, recent events have shown that it's not ideal, but for many of the poorest families it's all that stands between them and having extortionate energy bills being thrust upon them.

 

The ongoing increases in the wholesale energy markets, show that there are no easy fixes here, and you are correct that everyone of us will be paying substanially more for our energy in the future, but I do think that will be more down to wholesale prices, rather than to sort out this mess.

I agree with your fuel poverty comments but the price cap was to prevent the Big 6 from profiteering from customers who did not engage with the market.  

 

Imagine if the government put a price cap on petrol at the pump?  No, wouldn't happen would it.

 

The price cap killed competition and saved what remains of the original Big 6.

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Jambo-Jimbo
13 minutes ago, Dirty Deeds said:

I agree with your fuel poverty comments but the price cap was to prevent the Big 6 from profiteering from customers who did not engage with the market.  

 

Imagine if the government put a price cap on petrol at the pump?  No, wouldn't happen would it.

 

The price cap killed competition and saved what remains of the original Big 6.

 

I'm all for competition, but it's clear the whole supplier market has to change, with companies being able to survive the volatile wholesale market, which is really only going to leave the big 6 when the dust settles.

 

We can't have the current situation and we can't have a return to the old days and I have no ideas how to fix it.

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Jambo-Jimbo

Entice & Orbit energy are the latest two companies to cease trading, they have a combined customer base of around 70k.

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Dirty Deeds
1 hour ago, Jambo-Jimbo said:

 

I'm all for competition, but it's clear the whole supplier market has to change, with companies being able to survive the volatile wholesale market, which is really only going to leave the big 6 when the dust settles.

 

We can't have the current situation and we can't have a return to the old days and I have no ideas how to fix it.

No simple answer and the horse has bolted re the current issues. 

 

There was massive government led move to domestic gas heating in the 1970s and we now need similar government intervention to move us away from gas heating. 

 

That supported by unprecedented investment in UK renewables.

 

Until the transition completes we need to radically improve our gas storage capability to protect from the price volatility currently ongoing. 

 

In short, massive government intervention through strategic planning instead of expensive reactionary measures.

 

A government providing £1.7bn to run a failed supplier with 1.7m customers for 6 months is insane. 

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Jambo-Jimbo
19 minutes ago, milky_26 said:

Zog with 11700 customers is the latest to go. 

 

It's going to be interesting where the customers of Zog Energy are transferred to.

Let's say for example they are moved to British Gas and their bills increase, which they undoubtedly will, they would have a valid argument of why should their bills increase and Bulb's customers haven't.

 

Bulb's customers, of which I'm one, won't see an increase in their tariff's for at least the next 3 or 4 months, whereas customers of Zog could find that their tariff's have increased substantially in the next 2 or 3 weeks.  I wonder if it's even feasible to transfer Zog customers to Bulb, probably not, but I can see a huge row erupt over this, especially if or when more companies go bust and Bulb's customers continue to pay their low tariff compared to other customers of other bust companies who have went bust after Bulb get moved to the likes of BG/SP/Eon etc and then get hit with a huge tariff increase.

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Dean Winchester
1 hour ago, Jambo-Jimbo said:

 

It's going to be interesting where the customers of Zog Energy are transferred to.

Let's say for example they are moved to British Gas and their bills increase, which they undoubtedly will, they would have a valid argument of why should their bills increase and Bulb's customers haven't.

 

Bulb's customers, of which I'm one, won't see an increase in their tariff's for at least the next 3 or 4 months, whereas customers of Zog could find that their tariff's have increased substantially in the next 2 or 3 weeks.  I wonder if it's even feasible to transfer Zog customers to Bulb, probably not, but I can see a huge row erupt over this, especially if or when more companies go bust and Bulb's customers continue to pay their low tariff compared to other customers of other bust companies who have went bust after Bulb get moved to the likes of BG/SP/Eon etc and then get hit with a huge tariff increase.

I thought Bulb was already variable so have already had their bills increased (and will increase again when the price cap goes up) in line with the price cap?

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Jambo-Jimbo
43 minutes ago, Dean Winchester said:

I thought Bulb was already variable so have already had their bills increased (and will increase again when the price cap goes up) in line with the price cap?

 

Yes, but that's not what I'm meaning.

Bulb & pretty much all of the other smaller suppliers' tariff's are lower than British Gas/Scottish Power etc, therefore when people get transferred over to another supplier their bills will increase, sometimes sharply, because they are now paying a higher tariff per unit of energy, than they were previously.

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