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

bristolleedsfan

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 can ask your existing company to object to switch, prudent to wait some days before starting another switch

merchcon55

bristolleedsfan said:

But he (Kwartang) is said by colleagues to be worried about the impact of the crisis on consumers and also on future competition, if the fallout from the shock sees a return to a more concentrated market, once again dominated by big players

I am reasonably sure this will be the eventual outcome, with limited choice available, and virtually identical prices.

In New York City for example, there is virtually no choice. Con Edison supplies your gas and electricity -  there is limited competition in who "delivers" (in essence who bills you), but the price difference is a few dollars a year. The "billing companies" offer incentives to the consumer to change - for example, 10,000 air miles or $50 Amazon card - but the reality is, the energy market works there the way it used to here: You got your gas from British Gas and your electricity from one regional supplier (in the Northwest where I live Norweb).

I sense a return to a very similar situation, with much higher costs.

ewokuk

ihatetrump said:

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 

Exactly my point.  They need to be putting checks in place to at least attempt to ensure this is not the case.  Make sure they have proper backing, proper expertise and experience, or don't allow them to set up in the first place.

They all use this advanced payment crap under the ruse that it is to smooth people's payments out over the year....how many people would actually rather simply pay for what they use every month and not spend all summer accruing a large credit?  Most people I would imagine.  We don't even get that option most of the time!  In fact billing people for what they use each month would help them realise how much they are using, especially in winter, and might encourage people to use less.  Having a static bill every month hides what is being used from the customer so unless they start calculating it themselves, they won't even know how much their usage is going up or down.

merchcon55

ewokuk said:

.how many people would actually rather simply pay for what they use every month and not spend all summer accruing a large credit?  Most people I would imagine.  We don't even get that option most of the time!

I do not agree - I think it is far easier for most households to budget, say £150 a month - every month - for energy - rather than pay £50 a month for 6-7 months of the year, but £300 a month for the 4-5 month winter period.

In the Northeast of USA (where I am originally from) seasonal "electric bill shock" is opposite to here - most people living in apartments have heat included in their rent, as apartments tend to be built with one big boiler rather than individual boilers like here. Your electric bill skyrockets in the summer months due to the need for Air Conditioning. My mum in "non summer months"  uses about $50 a month electricity, but in the past 3 months, in what has been an exceptionally hot New York City summer, she has used $750 ($250 a month) electricity. 

She is on a budget plan where her cost is spread evenly, as it suits her budget far better

Rocox

Energy Firm Green Warns It May Not Survive Winter - https://www.bloomberg.com/news/articles/2021-09-20/energy-firm-green-warns-it-may-not-survive-winter-power-update?

ewokuk

merchcon55 said:

ewokuk said:

.how many people would actually rather simply pay for what they use every month and not spend all summer accruing a large credit?  Most people I would imagine.  We don't even get that option most of the time!

I do not agree - I think it is far easier for most households to budget, say £150 a month - every month - for energy - rather than pay £50 a month for 6-7 months of the year, but £300 a month for the 4-5 month winter period.

The majority of people are not on such a tight budget that they need to budget every penny across the year.  They would be better off seeing the true cost during winter as it would encourage them to use less, and therefore save money overall vs paying the same every month and not even thinking about it.  We don't get the choice either way.

[Deleted User]

ewokuk said:

ihatetrump said:

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 

Exactly my point.  They need to be putting checks in place to at least attempt to ensure this is not the case.  Make sure they have proper backing, proper expertise and experience, or don't allow them to set up in the first place.

They all use this advanced payment crap under the ruse that it is to smooth people's payments out over the year....how many people would actually rather simply pay for what they use every month and not spend all summer accruing a large credit?  Most people I would imagine.  We don't even get that option most of the time!  In fact billing people for what they use each month would help them realise how much they are using, especially in winter, and might encourage people to use less.  Having a static bill every month hides what is being used from the customer so unless they start calculating it themselves, they won't even know how much their usage is going up or down.

Suppliers are required to pay their wholesalers in advance of supply: are you expecting them to give all their customers a free loan for a month? We all pay for home insurance; road tax; mobile phones et al in advance so I don’t see what the problem is; particularly, as all credit balances are fully protected.

As for Ofgem Due Diligence, I am really not sure what more Ofgem can do: it is an energy not a financial regulator. Companies across the board go bust whether they are Carillion owing £Ms or Banks such as Northern Rock. We are in very difficult market conditions and even the best run energy suppliers are struggling - partly, due to an unrealistic Ofgem Cap. If anything the blame for the mess we are in sits firmly with the Government - rather than plan for energy continuity its focus has been solely on Net Zero. The lack of gas storage being but one stark example.

Rivers_mum

Given that Avro are looking dodgy do people think it would be wise to start a switch today? It’s going to cost more but I’m guessing that the sooner I move the better. 

superbigal

Zog still allowing online applications.
Most professional non big 6 supplier I have ever dealt with.
Hopefully have hedged and survive.

Verdigris

superbigal said:

Zog still allowing online applications.
Most professional non big 6 supplier I have ever dealt with.
Hopefully have hedged and survive.

I hope so, too.