Utility Point to Cease Trading

merchcon55

[Deleted User] said:

Is the Government brave enough to carry out an emergency review of the Ofgem Cap? If they don’t then more suppliers will undoubtedly fail, with costs passed on to everybody, and bigger suppliers will end up as the only beneficiaries. The downside of a revised Ofgem Cap is that tariffs will rise. This is a ‘perfect storm’ for a Government that wants to add green taxes to pay for Net Zero.

This is what I stated above. Unless the Government immediately removes the price cap, many companies will make a simple commercial decision and cease trading. Even the "big 6" could decide do "shut the doors". Are we perhaps looking at a Nationalisation of the Energy Industry???? 

[Deleted User]

merchcon55 said:

[Deleted User] said:

Is the Government brave enough to carry out an emergency review of the Ofgem Cap? If they don’t then more suppliers will undoubtedly fail, with costs passed on to everybody, and bigger suppliers will end up as the only beneficiaries. The downside of a revised Ofgem Cap is that tariffs will rise. This is a ‘perfect storm’ for a Government that wants to add green taxes to pay for Net Zero.

This is what I stated above. Unless the Government immediately removes the price cap, many companies will make a simple commercial decision and cease trading. Even the "big 6" could decide do "shut the doors". Are we perhaps looking at a Nationalisation of the Energy Industry???? 

The Government does have the option of removing green levies. My guess is that they will do nothing.

bristolleedsfan

merchcon55 said:

Dolor said:

Is the Government brave enough to carry out an emergency review of the Ofgem Cap? If they don’t then more suppliers will undoubtedly fail, with costs passed on to everybody, and bigger suppliers will end up as the only beneficiaries. The downside of a revised Ofgem Cap is that tariffs will rise. This is a ‘perfect storm’ for a Government that wants to add green taxes to pay for Net Zero.

This is what I stated above. Unless the Government immediately removes the price cap, many companies will make a simple commercial decision and cease trading. Even the "big 6" could decide do "shut the doors". Are we perhaps looking at a Nationalisation of the Energy Industry???? 

No energy company is under any obligation to offer a variable rate tariff, they could like So Energy only offer fixed rate tariff to new customers, with SVR tariff to existing customers that come off fixed rate tariff, that is what price cap was designed for to protect those who were up until now on expensive default tariff.

Utility Point last December were offering cheapest fixed rate tariff + £100 each refer a friend

oafcmetty

Recently switched away, but not yet had a refund of my credit balance. Any idea of chances of getting it back?

apt

oafcmetty said:

Recently switched away, but not yet had a refund of my credit balance. Any idea of chances of getting it back?

Credit balances are protected, but it may take time for you to get your money back. 

greenguppie

bristolleedsfan said:

merchcon55 said:

Dolor said:

Is the Government brave enough to carry out an emergency review of the Ofgem Cap? If they don’t then more suppliers will undoubtedly fail, with costs passed on to everybody, and bigger suppliers will end up as the only beneficiaries. The downside of a revised Ofgem Cap is that tariffs will rise. This is a ‘perfect storm’ for a Government that wants to add green taxes to pay for Net Zero.

This is what I stated above. Unless the Government immediately removes the price cap, many companies will make a simple commercial decision and cease trading. Even the "big 6" could decide do "shut the doors". Are we perhaps looking at a Nationalisation of the Energy Industry???? 

No energy company is under any obligation to offer a variable rate tariff, they could like So Energy only offer fixed rate tariff to new customers, with SVR tariff to existing customers that come off fixed rate tariff, that is what price cap was designed for to protect those who were up until now on expensive default tariff.

Utility Point last December were offering cheapest fixed rate tariff + £100 each refer a friend

.. and those who are on deemed contracts because they move into a property supplied by that supplier, but have not agreed to anything different.

greenguppie

oafcmetty said:

Recently switched away, but not yet had a refund of my credit balance. Any idea of chances of getting it back?

100%  ... assuming the credit balance you refer to is supported by a final bill based upon an agreed final reading
(so may people refer to credit balances that are not)

If you have not yet received that final bill, the chances of you receiving one is also 100%.

Can't put a timeframe on either, though.

greenguppie

wakeupalarm said:

Consumers are bearing the costs of this.  Each time an energy company fails the direct cost is past onto consumers bills.
Its a never ending cycle of higher costs, leading to more failures, leading to costs being passed onto consumers, etc.

The retail energy market is broken.

Not necessarily 100% true.

I'm sure there has been a SoLR who agreed to cover all the costs themselves.

In the case of recent failure of Hub Energy, the SoLR (Eon Next) bid agreed agreed to mitigate any claim, offering to cover much of the migration costs as well as as much of the credit balances they could afford (exact terms not released, as subject to commercial sensitivity). Ofgem discloses details of any claim eventually made (i.e. cost, how much it means is spread across off suppliers as a consumer levy), but that could take over a year.

But todays failures are largish suppliers (UP has 220,000 customers, Peoples Energy have 350,000 customers) so I expect there will be at least a partial claim. If no one comes forward with a bid, and Ofgem is forced appoint a SoLR, then a full claim may well be made.

(To date, Ofgem has always received bids to be the appointed SoLR)

Shedman

razord said:

Yeh, aren't neon reef the same as utility point?

Neon Reef have same directors as UP but fortunately have their own electricity supply licence and are a different legal entity.  Fingers crossed they survive till at least past this winter period as both my stepdaughter and we are on good fixed deals at moment 

t0rt0ise

Oh my, that's my gas gone and my electricity just gone too. Not my lucky month!