Why do energy companies go bust on a Wednesday?!

tghe-retford

How many energy companies went bust yesterday?

QrizB

tghe-retford said:

How many energy companies went bust yesterday?

Seemingly, none

The current list is here with no-one after Goto Energy on the 18th.

Sterlingtimes

An article at Sky suggests that the following are threatened for following on from issues at CNG: Opal, Dyce, Xcel, Zog, Zebra, Entice, Maxen and Osso.

bristolleedsfan

https://news.sky.com/story/survival-hopes-fade-for-energy-suppliers-as-shipper-cng-warns-over-hedges-12440093

wittynamegoeshere

It's becoming obvious that the whole concept of competition in the supply market is just a charade, even a scam.  Even those who've hedged will go bust, as the hedge company is about to go bust.

This was always a one-way bet for them - if they make profit they keep it, the moment they start losing money they pull the plug.  Heads they win, tails everyone else loses.  Those with the money make more, those without have to pay more.

People voluntarily paid extra for their fixed tariff, and their supplier correctly invested this extra money in hedging against price rises.  But it turns out the entire system is built on nothing.

I really hope some new ideas are going come along, the game's over.

Sterlingtimes

wittynamegoeshere said:

It's becoming obvious that the whole concept of competition in the supply market is just a charade, even a scam.  Even those who've hedged will go bust, as the hedge company is about to go bust.

This was always a one-way bet for them - if they make profit they keep it, the moment they start losing money they pull the plug.  Heads they win, tails everyone else loses.  Those with the money make more, those without have to pay more.

People voluntarily paid extra for their fixed tariff, and their supplier correctly invested this extra money in hedging against price rises.  But it turns out the entire system is built on nothing.

I really hope some new ideas are going come along, the game's over.

Thank you for a good posting. Where the supplier enters into fixed-price contracts with its customer and then purposefully decides not to hedge then that looks like a "charade". Where the supplier, having decided not to hedge, offers highly reduced prices for cash flow purposes then that is bordering then that is most probably a "scam". 

I have a fixed price from Zog and I am worried that the insolvency of CNG may bring Zog down. Zog has been very good.

Verdigris

I have a fixed price from Zog and I am worried that the insolvency of CNG may bring Zog down. Zog has been very good.

Same here. "Fortunately" my fix ends on the 20th November and CNG finish on the 30th, so I'd be on a cap price, anyway. Sad for Zog, though.

Grumpy_chap

wittynamegoeshere said:

It's becoming obvious that the whole concept of competition in the supply market is just a charade, even a scam.  Even those who've hedged will go bust, as the hedge company is about to go bust.

This was always a one-way bet for them - if they make profit they keep it, the moment they start losing money they pull the plug.  Heads they win, tails everyone else loses.  Those with the money make more, those without have to pay more.

People voluntarily paid extra for their fixed tariff, and their supplier correctly invested this extra money in hedging against price rises.  But it turns out the entire system is built on nothing.

I really hope some new ideas are going come along, the game's over.

Are we, possibly, all partly to blame?  
All the advice is to just sign for the cheapest - there is little ever said about the customer service or the financial capacity of the provider.  Even OFGEM seem to have had virtually no bar to entry.  
In any business sector, if the customer only seeks lowest price, then that forces a race to the bottom and is unsustainable.

brewerdave

Verdigris said:

I have a fixed price from Zog and I am worried that the insolvency of CNG may bring Zog down. Zog has been very good.

Same here. "Fortunately" my fix ends on the 20th November and CNG finish on the 30th, so I'd be on a cap price, anyway. Sad for Zog, though.

Oh no - I'm on a fix with Zog til February and WAS hoping to get thru a couple more months at least into the new year........

Shedman

At least one company has sorted out its supply post CNG exit....hopefully Zog has done something similar 🤞🏻

"The Board of Good Energy (AIM: GOOD), the 100% renewable electricity supplier and innovative energy services provider, announces it has partnered with Barrow Green Gas ("Barrow") for shipping services. 

The agreement ensures continuity for Good Energy's gas customers and builds on the renewable supplier's longstanding relationship with Barrow. 

Barrow has been contracted by Good Energy for gas shipping services, ensuring continuity of supply for the renewable energy company's gas customers following the market exit of CNG. The partnership will build on the two companies' existing relationship and will help Good Energy transition to becoming its own gas shipper."