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

gt94sss2

ewokuk said:

Assuming I made it in time, what happens to me remaining balance with Avro I don't know, since technically I started the switch before they went bust so SoLR won't apply and I won't have an SoLR supplier to refund me. 

The SoLR will still be responsible for refunding your credit - just expect for your case to one of the last they deal with

Bendo

ewokuk said:

Ok so the switch from Avro to E.on Next which I put through on Sunday should have made it onto the systems just in time right?  Email from E.on monday with my welcome pack stating they will be my provider from 30th Sept, and email from Avro yesterday saying sorry to see me go.  I am assuming I managed to get out just in time.

Assuming I made it in time, what happens to me remaining balance with Avro I don't know, since technically I started the switch before they went bust so SoLR won't apply and I won't have an SoLR supplier to refund me.  I have just cancelled my Avro direct debit in an attempt to at least force them to take the next payment out of what I already have in credit.

I'm in the same boat, did the switch on Sat.

It may still fail depending on how long it takes to appoint the solr, however given how many are failings it may take a while and if it does, there is more chance of it completing so fingers crossed.

The SoLR is responsible for refunding all accounts, including closed ones. It may take a while but you will get anything you are owed eventually.

It took about 19 momths for me to get my credit back from Utilita when Eversmart went bust so you will need to be patient.

ewokuk

I just checked the findmy suplier for gas and its still saying Avro.  e.on Next doesnt go live until 30th but how can I check if the switch was put through in time so that SoLR doesn't apply to me??

Bendo

Yoy wont be switched until after the cooling off period so you are looking at first week in October realistically.

ewokuk

Bendo said:

Yoy wont be switched until after the cooling off period so you are looking at first week in October realistically.

Well e.on welcome pack says they take over on 30th and thats when i should take my meter reading.  14 day cooling off will be on Monday 4th.

edit: now e.on website says I will be with them from 5th and that's when they want the first reading (which makes more sense).  On the plus side that gives me a bit of extra time on my cheap Avro tarrif

their switch status says all looks good for the electric and they have everything they need and that seems ot be pretty much confirmed.  For gas it says "We’ve had a chat with your old supplier. They’re giving us the information we need to get everything sorted for you.".  This seems odd, considering they must have had conversations with Avro about the electric and got that sorted, why would the gas not have been done at the same time?

Cactus_Jack

It really is a poor state of affairs. I spent considerable time a few weeks ago researching a cheap fixed tariff then going ahead with the switch. Green proceeded to mess the transfer up resulting in a load of wasted time on phone calls, then went bust.

Won't even get the benefit of the fixed tariff. Big suppliers must be laughing now. An experience like mine will put the average joe off ever switching again.

HonestJohn

AVRO and Green gone. 2 to go.

emc

Sea_Shell said:

Have the big 6 suppliers  "hedged" enough gas to end up propping up the whole SoLR market.

They'd have planned for increases,  and the odd supplier going bust...but not this!!

Can they cope?

Kwasi Kwarteng said the government was exploring the possibility of lending money to bigger energy firms to help them absorb the cost of taking on new customers from companies that had gone bust.

"If we do have this policy, they will be expected to pay back the loans," he added.

https://www.bbc.co.uk/news/business-58634106

This would presumably include any losses from any extra non-hedged gas, as well as the admin costs.

ewokuk

emc said:

Sea_Shell said:

Have the big 6 suppliers  "hedged" enough gas to end up propping up the whole SoLR market.

They'd have planned for increases,  and the odd supplier going bust...but not this!!

Can they cope?

Kwasi Kwarteng said the government was exploring the possibility of lending money to bigger energy firms to help them absorb the cost of taking on new customers from companies that had gone bust.

"If we do have this policy, they will be expected to pay back the loans," he added.

https://www.bbc.co.uk/news/business-58634106

This would presumably include any losses from any extra non-hedged gas, as well as the admin costs.

My question would be, if you were running one of the big 6, what motivation would you have to take on a government loan that has to be paid back, in order to take on hundreds of thousands of loss making customers (since thery won't have already bought enough gas to cover them all so would need to pay huge prices for it way above the cap) that realistically you don't need anyway.  It seems to be a high degree of risk for very little gain.  They would have to hope the majority of those customers stick around long enough for them to make a profit from them to make it worthwhile (and that would almost certainly need to be well beyond April when the cap will be raised by another big chunk).  And perhaps they would stick around....but it seems an unnecessary risk in the current climate and one they really don't need to take.  If I was running one of those I would probably say no thanks, not right now, maybe ask us again middle of next year.

masonic

ewokuk said:

emc said:

Sea_Shell said:

Have the big 6 suppliers  "hedged" enough gas to end up propping up the whole SoLR market.

They'd have planned for increases,  and the odd supplier going bust...but not this!!

Can they cope?

Kwasi Kwarteng said the government was exploring the possibility of lending money to bigger energy firms to help them absorb the cost of taking on new customers from companies that had gone bust.

"If we do have this policy, they will be expected to pay back the loans," he added.

https://www.bbc.co.uk/news/business-58634106

This would presumably include any losses from any extra non-hedged gas, as well as the admin costs.

My question would be, if you were running one of the big 6, what motivation would you have to take on a government loan that has to be paid back, in order to take on hundreds of thousands of loss making customers (since thery won't have already bought enough gas to cover them all so would need to pay huge prices for it way above the cap) that realistically you don't need anyway.  It seems to be a high degree of risk for very little gain.  They would have to hope the majority of those customers stick around long enough for them to make a profit from them to make it worthwhile (and that would almost certainly need to be well beyond April when the cap will be raised by another big chunk).  And perhaps they would stick around....but it seems an unnecessary risk in the current climate and one they really don't need to take.  If I was running one of those I would probably say no thanks, not right now, maybe ask us again middle of next year.

There wouldn't be any motivation. Ofgem can compel energy firms to take on customers of a failed supplier. Whether they take a loan from the government is then up to them. If they can afford not to then it wouldn't make much sense, but we don't know how it would compare with their other borrowings in terms of interest rate and repayment terms.