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

UnclaimedEnergy

I'd be exteamly surprised and a bit annoyed if Bulb are seeking a government bailout.

we've seen half the market go bust in the alst 3-4 years without any government bail-outs so Bulb should in no way get special treatment. Especially with £200m+ debt even before the wholesale crisis.

If the government want to step in now they should instead help by funding the cost to other suppliers for them going bust.

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UnclaimedEnergy said:

I'd be exteamly surprised and a bit annoyed if Bulb are seeking a government bailout.

we've seen half the market go bust in the alst 3-4 years without any government bail-outs so Bulb should in no way get special treatment. Especially with £200m+ debt even before the wholesale crisis.

If the government want to step in now they should instead help by funding the cost to other suppliers for them going bust.

I didn't say they were seeking a Government Bailout, but they are seeking a bailout.

https://www.bbc.co.uk/news/business-58619418

UnclaimedEnergy

Financial times have gone into more detail and seems lile they're asking their bankers/investers

one has already said it looks unattractive considering the situation.

unless they ditch the 'one tariff' approach then they're looking for a miracle anyway

ihatetrump

You only have to look at the Balance Sheets and the shareholders of these 'smaller' secondary operators to know they'll all (or most of them) be in trouble very soon. Check out each company on Companies House - there's nothing behind most of them - just opportunists setting up their own supply company, make a quick buck and see it fail.

Too many of them are propped up (i.e financed )by customer advance payments 

luckwudaveit

I'm currently in the process of switching from an EDF (GNE) tariff to Avro. I suspect Avro won't last the week. What's my chances of cancelling the switch as I'm in the cooling off period? 

Verdigris

If you're in the cooling off period there's no reason you can't cancel.

masonic

uncletupelo said:

I was with GNE when they went bust and was passed to EDF. EDF 'protected' my tariff until this month but their offer wasn't great when that lapsed and I moved.

Is what EDF did by protecting my tariff, and therefore my costs, normal practice?

No that's not normal practice. I've been involved in two SoLR takeovers and on both occasions I was subject to significant price increases from the day the SoLR was appointed.

"3.23 Ofgem policy: A failed supplier's customers should not expect to be protected from paying increased prices. However, deemed contracts can reflect no more than the reasonable costs of supply (including costs attributable to the purchase of gas or electricity at short notice), together with a reasonable profit."

https://www.ofgem.gov.uk/sites/default/files/docs/2008/12/solr_revised_guidance_-_december_2008_0.pdf

I don't know whether or not a deemed contract would be subject to the price cap as it is in effect a 6 month fixed term contract with no exit penalty. The only way Ofgem is going to get suppliers to bid to become SoLR (rather than force one) is be accepting tariffs that are above the price cap. Any losses incurred by the SoLR in stepping in to supply customers of the failed firm can theoretically be reclaimed from the industry, leading to higher prices for us all.

luckwudaveit

Verdigris said:

If you're in the cooling off period there's no reason you can't cancel.

I'm more thinking about the likelihood of getting through to Avro... 

niktheguru

luckwudaveit said:

Verdigris said:

If you're in the cooling off period there's no reason you can't cancel.

I'm more thinking about the likelihood of getting through to Avro... 

You contact your current supplier to block the transfer. 
Speaking to avro isn't necessary, the block can occur from your existing supplier (though its always good practice to contact the other supplier too)

luckwudaveit

niktheguru said:

luckwudaveit said:

Verdigris said:

If you're in the cooling off period there's no reason you can't cancel.

I'm more thinking about the likelihood of getting through to Avro... 

You contact your current supplier to block the transfer. 
Speaking to avro isn't necessary, the block can occur from your existing supplier (though its always good practice to contact the other supplier too)

Thanks - I have spoken to my existing supplier (EDF) and cancelled the switch. I have also emailed Avro to let them know and will cancel the DD to Avro. EDF advised that I can't start another switch (I'd like to move to Eon Next) until the account is back live with EDF - is this correct and any idea how long that might take?