Yet Another Energy Company Down The Tubes

[Canary42]

Pity, it's my current supplier, and I found them very good at Customer Service.

https://www.bbc.co.uk/news/business-59373198

[bednobs]

that's a biggun!

[andres]

That's a pity. We are with Bulb and have always found them to be satisfactory. It is the 7th largest energy firm .Things are looking grim
now. The only redeeming feature is that Bulb has been put into Special Administration measures. Not quite certain what that entails though .

[pixie374]

Never heard of them, but it's worrying, as the fewer left, and less competition, the more prices will rise.

[rockyracoon]

Blimey. I'm with Bulb.

[Peter Pedant]

well they can't be that good !
hur hur hur

[Peter Pedant]

// Not quite certain what that entails though .//

too big to fail - that is too big to be swallowed by anuvva
and so will be supported by the tax payer - that is you again and me

[Gromit]

Yep, I’m with Bulb. Been expecting this. They wanted to put my Direct Debit up from £60 to £110.
I had £149 quid credit, but said I was under paying which *** me off. I said no, and raised it voluntarily to £75.

[jno]

essentially, if they're failing it's probably because they're not charging enough to make a profit. As pixie says, prices will rise - but it's because they need to. You pay too low a price, and your supplier collapses.

[New Judge]

//...essentially, if they're failing it's probably because they're not charging enough to make a profit.//

Which they cannot do because of Mrs May's "Energy Price Cap." It's what happens when politicians interfere in free markets and in this case has led to the destruction of almost an entire business sector.

[emmie]

how so NJ. i mean people are being stung with energy costs and are having to make savings elsewhere.

[dannyk13]

NJ //Which they cannot do because of Mrs May's "Energy Price Cap.//
That cap was raised in August.
//https://www.ofgem.gov.uk/energy-policy-and-regulation/policy-and-regulatory-programmes/default-tariff-cap//

[dannyk13]

Sorry I'll try again
https://www.google.com/search?q=energy+price+cap+2021&client=avast-a-1&biw=1360&;bih=657&ei=75ecYcbnAdqU9u8P5ayOqAM&oq=ewnergy+price+caap&gs_lcp=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&sclient=gws-wiz

[barry1010]

emmie, the energy companies have to buy the gas and electricity they sell to you. Those prices have risen a lot over the last few months.

The energy companies have been subjected to the cap which meant they are paying more for the gas and electricity they buy than they are allowed to sell it to us. Buy for £100, sell for £80 (example only) and by the time they've paid overheads such as wages they are in big trouble and the business collapses. They can't rise the prices because of the energy cap.

[THECORBYLOON]

"So far in 2021, 24 energy companies have ceased trading, leaving over two million customers dependent on the safety net provided by the market regulator, Ofgem, to maintain their supplies and protect their credit balances while it moves them to a new supplier.

Additionally, Bulb Energy, with 1.7 million customers, has been placed in Special Administration, which means the government and the regulator will appoint an administrator to run the business."

Hardly "the destruction of almost an entire business sector." is it?

[emmie]

but if here was no energy cap then they could charge what they like. my energy costs have just gone up, for a small user like me it's a lot.

[barry1010]

I thought your prices were fixed, emmie - you'd done a good deal with your company. Or am I thinking of somebody else?

No company can operate at a loss for very long. My energy consumption has rocketed since my two elderly relatives moved in and it's going to get worse - as it will for everyone. For a large user like me, the price hike is going to be horrendous.

[barry1010]

And really without the energy cap they wouldn't charge what they liked - market forces would come in to play and competition from all the other companies would keep the prices down.
If British Gas (for example) got too greedy and charged as much as they thought they could get away with the energy equivalent of Aldi would come riding in and charge as little as thought they could to attract the customers and still make a profit.

[emmie]

i did Barry, but they stuck 9 quid a month extra on the new bill without a by or leave, apparently the computer said that i would be paying x, but i have been in credit with them, so much so i got money back from them as a form of rebate. I did discuss it with EDF and agreed for now to keep to x, but i wasn't best pleased.

[youngmafbog]

The cap may well have been raised, but it should not be there in the first place.

How can private companies be expected to provide a product at a price less than they can get it /produce it for? Problem is, most politicians are economically illiterate. Just look at Johnson recently.

[emmie]

i did strike a deal with them, and thought that was it, seems not.