Is one of the big guys about to go under?

Armengar

It seems a possibility.

https://www.theguardian.com/business/2021/sep/30/ofgem-prepares-for-looming-failure-of-a-leading-energy-supplier

MWT

https://forums.moneysavingexpert.com/discussion/6300979/big-six-collapse-ofgem-puts-advisers-on-standby#latest

Armengar

mod lock and delete. i missed that one.

Verdigris

https://forums.moneysavingexpert.com/discussion/6300979/big-six-collapse-ofgem-puts-advisers-on-standby#latest

DiseasedBunny

British Gas, I reckon…

Thrugelmir

DiseasedBunny said:

British Gas, I reckon…

Centrica have the financial firepower to hedge their forward purchases. A reason why the fly by nights have all failed. Inadequately financed. 

chewyluis

Thrugelmir said:

DiseasedBunny said:

British Gas, I reckon…

Centrica have the financial firepower to hedge their forward purchases. A reason why the fly by nights have all failed. Inadequately financed. 

To what extent they are hedged we don't know. The big boys also engage in plenty of speculative behaviour, and I wouldn't be so certain at least one of them hasn't got themselves into a massive tangle. Based on recent market activity though, I'd think BG are reasonably secure.

Verdigris

Although BG will only be hedged for a certain amount of demand. Presumably Ofgem only SoLR customers to them within any spare hedged capacity they have. They can't go on absorbing new customers infinitely.

Swipe

The article no doubt refers to Bulb.

MWT

Verdigris said:

Although BG will only be hedge for a certain amount of demand. Presumably Ofgem only SoLR customers to them within any spare hedged capacity they have. They can't go on absorbing new customers infinitely.

Recovering the costs of buying spot to meet the unplanned demand is one of the main things that is going to make this an expensive process for everyone.

The SoLR is not going to have to absorb that loss this time around.

DiseasedBunny

Swipe said:

The article no doubt refers to Bulb.

Who aren’t a big 6 though?

(admittedly, my post was a little flippant 🙈)