Energy news in general

MWT

This part is still a concern:

"...take a more robust approach to assessing suppliers’ operational capacity, pricing and hedging strategies and planned investment as they reach the 50,000 and 200,000 domestic customer milestones."

Five of the failed suppliers this year were below or right at the 50,000 boundary.

There is currently a strong incentive to stay below the 50,000 limit and just start another company if they get too close, this leaves those most in need of close supervision able to hide the true state of their business...

Might be interesting to see that limit as per director or PSC to draw all the smaller companies under the same beneficial control into scrutiny...

[Deleted User]

There was also an Ofgem news item yesterday of interest. I hesitate to post links to other sites because of all the ads and clickbait they bring with them. Saw this on various.

The energy networks had appealed against an Ofgem decision to cap their payments to shareholders, but the Competition authority (CMA) has turned it down. The headline of 'slashing' bills is a slight exaggeration, as it works out an average of £9 a customer, but still...

https://uk.sports.yahoo.com/news/ofgem-gets-thumbs-plans-slash-093835316.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAMtExxm-t1k18ZubrpaupkTIV4P02qJht2NHeGZdC0FQRZoKrYBXyXIPR_OyTpY9WQ_phdV5SOagYquTvt-J6HbZSdNddjH4NHLV9lDAUhpmUjiv-Z6pH8mz7wlZuzr8bWu71ZHjwDBH_LN9VhE_O9Voc_e4SA0_2P44L74SgpdV

[Deleted User]

Another 7 suppliers are nearing possible Ofgem default. 

https://www.shropshirestar.com/news/uk-news/2021/10/29/ofgem-could-rip-up-licences-of-seven-energy-suppliers-as-payment-deadline-looms/

[Deleted User]

Payments outstanding to Ofgem by seven suppliers. List by supplier. 

https://www.ofgem.gov.uk/publications/ofgem-orders-seven-suppliers-pay-ps179m-unpaid-renewables-obligations-payments

BUFF

spot1034 said:

I've noticed over the past few days that the interconnector between the UK and France which was put out of action a few weeks ago is back up and running at reduced capacity. 1GW transfer is the most I've observed so far, which is roughly half its usual capacity. It is shown as 'IC France' here. https://gridwatch.co.uk/    (just click on 'meters' if you prefer the old style display) 

going to take until October 2023 for full reinstatement
https://www.reuters.com/business/energy/uk-france-power-link-hit-by-fire-set-partial-restart-ahead-plan-2021-10-14/

[Deleted User]

Nothing to do with fishing disputes, then…?

[Deleted User]

It seems from the Independent that Bulb may also be struggling. No wonder Ofgem is having a rethink about the cap mechanism. The golden goose has been well and truly killed by the unforeseen rise in wholesale prices - shot, poisoned, stabbed and cooked for an early Christmas dinner!

However, I do hope that Ofgem is not just going to capitulate, and kowtow to the wailing and gnashing of teeth from the electricity suppliers, especially the Big Six. They will just have to use the massive reserves they will have built up during the good times, to cover the bad times. Or ask for some dividends back from their shareholders.

From the customer side, I don’t think there are too many household budgets that won’t be burned by a doubling, and worse, of energy costs. Fuel poverty, which already exists, will go through the roof. 

Meanwhile, I have sent out a search party to try and locate Kwasi Kwarteng. 

QrizB

Deleted_User said:

However, I do hope that Ofgem is not just going to capitulate, and kowtow to the wailing and gnashing of teeth from the electricity suppliers, especially the Big Six.

It's not the Big Five who are complaining, it's the slightly smaller suppliers like Bulb.

I'm sure the Big Five would be quite happy for the regulator to drive all their competition out of business.

[Deleted User]

Extract from Ed Miliband’s interview with Andrew Marr today. Source The Labour List.

• On nationalising energy company Bulb: “There’s two options in relation to energy companies that are in trouble. One is to get their customers taken on by other companies, which is what’s been happening. Secondly is a last resort to say we should have a special administration regime where it’s held in the public sector. I think we look at both of those options.”
• In response to Marr saying that is not nationalisation: “Well, it would be actually, in the short term. And then they’d go back into the market place. The test on this is, do you get value for money for bill payers and taxpayers?”
• Asked about Keir Starmer’s view of nationalising energy, he defended the Labour leader, saying: “There’s a role for common ownership in relation to energy. But there’s lots of different aspects to common ownership in energy. There’s supply, there’s generation, there’s distribution and there’s the grid. The energy market clearly isn’t working. We’re going to step back and look at what the right way of modelling our energy system in the future is. So there’s a role for common ownership, but we’ll set out at the election what it is exactly.”

At the election? How far off is that? 

BUFF

Deleted_User said:

At the election? How far off is that? 

In theory 2nd May, 2024.