More Small Suppliers Could Go Bust

Legacy_user

Wishing thinking or an informed opinion:

https://www.theguardian.com/business/2017/jul/02/co-op-energy-chief-david-bird-more-small-suppliers-could-go-bust

molerat

David Bird, chief executive of Co-operative Energy, said that the regulator Ofgem needed to set financial stress tests for new market entrants, to reduce the risk of firms folding and customers being left in the lurch.

Talking sense but obviously too obvious for OFGEM.

Ofgem said it was considering whether to consult on guidance for the process.

Concerns over the stability of some small firms led Dermot Nolan, Ofgem’s chief executive, to say in February that he would “review our approach to awarding supply licences, the financial requirements on suppliers.”
Bird said he supported a change to the licensing conditions: “There should be some form of financial stress test; it doesn’t need to be unnecessarily onerous.”

So OFGEM are thinking about thinking about doing something :rotfl:

brewerdave

Interesting to read his views on "the supplier of last resort" - the major worry I currently have with IRESA ,is that they go under next Winter and nobody wants to shoulder the load of their (excellent ) tariffs and the fact that many customers will still be in credit.

fredandwilma

brewerdave wrote: »

Interesting to read his views on "the supplier of last resort" - the major worry I currently have with IRESA ,is that they go under next Winter and nobody wants to shoulder the load of their (excellent ) tariffs and the fact that many customers will still be in credit.

Accounts due by 30th September. Getting ever closer, now?

For some people, their excellent tariffs will be close to expiring next winter? There were a fair few people on here who switched in winter?

Has anyone had their tariff expire yet, and if so, what tariff is Iresa currently offering to existing customers when their tariff expires? They must reach the point where they have to offer another tariff. I don't recall them ever having a standard tariff.

The last tariff was available around 11/04/17

For those on Flex 2 it should expire in November, to my reckoning.

Flex 4 was the last tariff offered.

You can't operate forever on one 12 month tariff?

Or maybe those lucky Iresa customers will stay on their tariff ad infinitum? :rotfl:


https://www.loveenergysavings.com/energy-suppliers/iresa-limited/home-energy-price-updates/

http://www.iresa.co.uk/wp-content/uploads/2016/03/IresaEnergyTariffs.pdf

Norman_Castle

fredandwilma wrote: »

Has anyone had their tariff expire yet, and if so, what tariff is Iresa currently offering to existing customers when their tariff expires?

Tariff Name Electricity: IRESA Flex1 12month Fixed Direct Debit (ELECTRICITY)
Rate Per kWh Electricity: 9.753 p
Daily Charge Electricity: 12.530 p
Exit Fee Electricity: £ 0.000


You might be interested in one of our following tariffs:
IRESA Flex 4 12 month Fixed Direct Debit
Tariff Name IRESA Flex 4 12 month Fixed Direct Debit (ELECTRICITY) Daily Charge 13.280 p Rate 1: 10.900 p


You may contact us by email, or raise a ticket to advise us on how you wish to proceed. If we receive no instructions from you, we may assume that you want to proceed with our default contract.

fredandwilma

Norman_Castle wrote: »

Tariff Name Electricity: IRESA Flex1 12month Fixed Direct Debit (ELECTRICITY)
Rate Per kWh Electricity: 9.753 p
Daily Charge Electricity: 12.530 p
Exit Fee Electricity: £ 0.000


You might be interested in one of our following tariffs:
IRESA Flex 4 12 month Fixed Direct Debit



That's exactly my point - that's the only tariff(s) they currently have available? Nor do they have a SVT. As far as i can tell, they've never had a SVT.

Tariff Name IRESA Flex 4 12 month Fixed Direct Debit (ELECTRICITY) Daily Charge 13.280 p Rate 1: 10.900 p


You may contact us by email, or raise a ticket to advise us on how you wish to proceed. If we receive no instructions from you, we may assume that you want to proceed with our default contract.

Your Flex 1 fixed tariff has likely, just expired in July? so they have transferred you to the Flex 4 tariff, (because they don't have a SVT).

But as the Flex 4, 12 month fixed tariff expires, what then? There is no SVT?

The Flex 4 tariff has been around for at least 7 months, now.

They are not creating new tariffs.

Iresa can't lie 'dormant' forever.

Norman_Castle

fredandwilma wrote: »

Your Flex 1 fixed tariff has likely, just expired in July? so they have transferred you to the Flex 4 tariff, (because they don't have a SVT).

But as the Flex 4, 12 month fixed tariff expires, what then? There is no SVT?

The Flex 4 tariff has been around for at least 7 months, now.

They are not creating new tariffs.

Iresa can't lie 'dormant' forever.

Due to end in the next few days. I'm not sure what their "default contract" is. Presumably Flex 4 if thats the only one they have.
Are they obliged to have a standard variable tariff? Should they regularly create new tariffs?

molerat

MSE CEC lists Flex4 as the default at end of contract. Although they cannot default you onto a fixed term there is no exit fee so it seems reasonable.

System

molerat wrote: »

MSE CEC lists Flex4 as the default at end of contract. Although they cannot default you onto a fixed term there is no exit fee so it seems reasonable.

Under the terms of their Supply Licences, suppliers are not permitted to move consumers on to another fixed tariff without agreement. It begs the question as to what the situation is if consumer A moved out of a property and consumer B moves in and Iresa is the Deemed Supplier? What is the contract that they are offering in these circumstances?

fredandwilma

It's unorthodox to say the least, for a supplier not to have a SVT, and a missed business opportunity if nothing else, by Iresa.

Maybe it's part of the wider business plan to retain customers?

Or maybe it's just inexperience.

I can't find the legalities other than Ofgem stating all companies have SVT's. Not this one?

Make the most of moving from one cheap tariff to another whilst you can? :rotfl:

Soon, all Iresa customers will be on Flex 4 if that's the tariff they are defaulting to.

You could have your tariff for another year, even if the worst comes to the worst.

System

fredandwilma wrote: »

It's unorthodox to say the least, for a supplier not to have a SVT, and a missed business opportunity if nothing else, by Iresa.

Maybe it's part of the wider business plan to retain customers?

Or maybe it's just inexperience.

I can't find the legalities other than Ofgem stating all companies have SVT's. Not this one?

Make the most of moving from one cheap tariff to another whilst you can? :rotfl:

Soon, all Iresa customers will be on Flex 4 if that's the tariff they are defaulting to.

You could have your tariff for another year, even if the worst comes to the worst.

Slight thread drift, but I should imagine that Iresa are hoping that Ofgem will release the arm lock before too long. The risk of a supplier default must be increasing by the day: it's nearly 3 months now without any new customers.