Four more small energy firms could go bust next week (c. 20/09/21)

jimjames

YBR said:

Sea_Shell said:

All this recent talk of gas supplies etc. made me realise we don't have any of those big round gas storage units anymore.

We used to have 2 in the industrial part of town, but they were knocked down years ago.

Do we basically not store gas anymore, and is that the problem?

One way we store gas is to pump up the pressure in transmission and distribution pipes during times of low usage (basically overnight) and let it drop during the day. At some sites there are large sections of pipe buried specifically for this storage. I don't know what pressure the gas towers used to be, but I can guess it's a lot less than these pipes take.

Centrica shut one major storage site in 2017

https://www.reuters.com/article/us-britain-gas-rough-idUSKBN19B0TT

The comment at the time couldn't have been more accurate: 

Without Rough, Britain would be more vulnerable to winter price shocks. Wholesale prices would have to rise to attract more gas from Norway, Europe or liquefied natural gas (LNG) suppliers, with a knock-on effect on consumer prices.

CalvinHobs

brewerdave said:

CalvinHobs said:

I cancelled my direct debit but if Avro are still in business come October, I will pay the bill using the "one-off payment" option on their website. I'm not sure what will happen if they go under and we get moved to another supplier - presumably I will need to set up a direct debit with the new supplier?

The issue with cancelling the DD whilst still with them ,is that they can move you onto a more expensive tariff eg higher daily standing charges.
You will probably find that the new supplier (IF Avro go down) will ask you to set up a DD in the fullness of time.
I've been thru 4 previous SOLR processes and didn't leave the DD set up with the failed company. Only caused me an issue once when the SOLR tried to charge me a different tariff from the one they had moved me over to ,on the grounds that I hadn't set up a DD. I argued (successfully) that they had never asked me for bank details !! 

If Avro stay in business and move me on to a more expensive tariff then I would see this as a good thing: It would mean they had taken me out of my 12 month fixed tariff so I would be free to switch to another supplier. Having read the thread about Avro & Colorado Energy it seems that Avro's bright future is behind them.

Sea_Shell

Sky News are reporting that Igloo maybe next, as they are believed to be in talks with A&M (insolvency firm).

brewerdave

Sea_Shell said:

Sky News are reporting that Igloo maybe next, as they are believed to be in talks with A&M (insolvency firm).

Surprising that the two suppliers who have approached "restructuring" advisors (IGLOO & GREEN) were not amongst the most likely failures being discussed recently ,such as Symbio, Together Energy & Neon Reef

julz999

PurePlanet are saying they're OK :-
community.purepla.net/latest-news-11/pure-planet-response-to-the-energy-crisis-14015

"At Pure Planet, we buy our Members’ energy in advance – this is known as hedging. We feel we’re well hedged for the winter, which means we have the energy we expect our Members will need until spring covered."

ewokuk

CalvinHobs said:

brewerdave said:

CalvinHobs said:

I cancelled my direct debit but if Avro are still in business come October, I will pay the bill using the "one-off payment" option on their website. I'm not sure what will happen if they go under and we get moved to another supplier - presumably I will need to set up a direct debit with the new supplier?

The issue with cancelling the DD whilst still with them ,is that they can move you onto a more expensive tariff eg higher daily standing charges.
You will probably find that the new supplier (IF Avro go down) will ask you to set up a DD in the fullness of time.
I've been thru 4 previous SOLR processes and didn't leave the DD set up with the failed company. Only caused me an issue once when the SOLR tried to charge me a different tariff from the one they had moved me over to ,on the grounds that I hadn't set up a DD. I argued (successfully) that they had never asked me for bank details !! 

If Avro stay in business and move me on to a more expensive tariff then I would see this as a good thing: It would mean they had taken me out of my 12 month fixed tariff so I would be free to switch to another supplier. Having read the thread about Avro & Colorado Energy it seems that Avro's bright future is behind them.

Exactly what I have been saying.  There are zero checks done on whether these people are suitable to be allowed to set up these companies.  Looking at the Avro & colorado thread they are ZERO checks done at any point in time let alone before they are allowed to start trading.  This is the usual civil service incompetence.  Anyone setting up an energy company like this should have to be APPROVED by ofgem first, and ofgem should be doing multiple checks to ensure those people are capable of doing it. What si the point in a regulator if they aren't going to regulate.  The clearly dodgy people running these companies need to be held personally accountable, seize their assets to pay for it (or as much of it as their assets are worth).  As it stands they have milked it all and the taxpayer will be the one left funding it while they walk off laughing with millions in their pocket.

Energyinsider

Pure planet are backed by BP, which energy suppliers survive will come down to who has the deepest pockets

Currently cost of supplying energy is £600 over the cap, making retail business nearly impossible. My take on who will survive.

Will be ok 
British Gas
E.on 
EDF

Scottish Power
Ovo/ SSE — less sure about
Octopus - recent £200 mill investment + Octopus group backing

Should be ok
Shell - huge resources 
Utility Warehouse divested into broadband etc 
Pure planet - backed by BP
So energy - ESB just took 75% (Irish state owned electric company)

not sure - larger independents like
Bulb - too big to fail? - lots of chat atm
Utilita
Good energy 

Ecotricity 


Looks likely to fail soon
Avro 
Igloo
Green 
Symbio
Nabuh
Rebel - redundancies under way 

Smaller independents 
- Will nearly all fail 

So I think about 10 will survive which chimes what experts are saying in the news

whattochoose

Energyinsider said:

Pure planet are backed by BP, which energy suppliers survive will come down to who has the deepest pockets

Currently cost of supplying energy is £600 over the cap, making retail business nearly impossible. My take on who will survive.

Will be ok 
British Gas
E.on 
EDF

Scottish Power
Ovo/ SSE — less sure about
Octopus - recent £200 mill investment + Octopus group backing

Should be ok
Shell - huge resources 
Utility Warehouse divested into broadband etc 
Pure planet - backed by BP
So energy - ESB just took 75% (Irish state owned electric company)

not sure - larger independents like
Bulb - too big to fail? - lots of chat atm
Utilita
Good energy 

Ecotricity 


Looks likely to fail soon
Avro 
Igloo
Green 
Symbio
Nabuh
Rebel - redundancies under way 

Smaller independents 
- Will nearly all fail 

So I think about 10 will survive which chimes what experts are saying in the news

Not too optimistic about Outfox the Market then?

bagand96

With the press coverage now, this will likely necomena self fulfilling prophecy for the smaller players as customer initiate switches away or try and get credit balances back... Bit like everyone rushing to get their cash out of Northern Rock. 

Sea_Shell

Will the SoLR in each case take on any employees of the failed companies under a TUPE agreement or similar?

Surely their call centres are going to need the extra handlers for the influx of transferred customers.