Energy news in general

Verdigris

I would hope that entry requirements would be more stringent and Ofgem would keep a much closer eye on the accounts of any new entrants.

bristolleedsfan

Deleted_User said:

I note from the Ofgem daily bulletin that, despite the current situation, which has now been ongoing for about 3 months, that companies are still applying for supply licences. And Ofgem is still granting them. 

I recall reading exactly the same thing late September/early October ish time, that news subsequently superceded by October letter referred to within Supply licence applications: reasons for the decision to amend the time period for assessment and to remove tacit authorisation | Ofgem

"The October letter indicated that as a vital step to restoring stability in the sector, in the interests of consumers, we had temporarily ‘paused’ assessment of applications for new supply licences, by extending the reasonable period of assessment, initially to a period of six months, subject to review"

 "Given the time needed to develop a new framework, we have decided to extend the six month pause, announced in the October letter, by a further three months"

How can supply applications be currently granted by Ofgem?

markin

Deleted_User said:

Did anyone see Sir Dieter Helm** on Newsnight last night (6th Jan)? Apparently he is issuing a report today, Friday.

"Had ministers acted on the market reviews they commissioned, such as Sir Dieter Helm’s 2017 cost of energy review, many of these problems could have been avoided."

See also https://www.ft.com/content/0dc34e5c-1471-4227-9db2-582aa5aa6f96

**Professor of Energy Policy and Official Fellow in Economics, New College, Oxford. 

Paywall, but heres the 2017 report. 240pages

https://www.gov.uk/government/publications/cost-of-energy-independent-review

[Deleted User]

@markin There is a link to his report of today, 7th Jan, in my post timed at 4.14pm. Couple of pages.   

[Deleted User]

@bristolleedsfan

See https://www.ofgem.gov.uk/publications/aurora-solar-farm-limited-notice-grant-electricity-generation-licence?utm_medium=email&utm_source=dotMailer&utm_campaign=Daily-Alert_07-01-2022&utm_content=Aurora+Solar+Farm+Limited+-+Notice+of+grant+of+an+electricity+generation+licence&dm_i=1QCB,7OQIX,7DAEHV,VBS6V,1

This may be a special case as solar, and generation rather than supply, but I’m pretty sure I’ve seen others. I’ll have to check. 

QrizB

Deleted_User said:

I note from the Ofgem daily bulletin that, despite the current situation, which has now been ongoing for about 3 months, that companies are still applying for supply licences. And Ofgem is still granting them. 

According to https://www.ofgem.gov.uk/master-publications-library?case_publication_type=2447&sort=publication_date there hasn't been a *supply* licence issued since IGas gained a gas licence on the 6th of October.

[Deleted User]

As I suspected, in retrospect, per my later reply to @bristolleedsfan . The recent licences are primarily for generation, rather than supply. 

It looks like the last supply applications were electricity and gas for Alaska Energy Ltd on 19th October 2021, and I can’t see that they were ever actually granted.

I suspect they were applications from our friend with the penchant for company names referencing American states…

Gerry1

wittynamegoeshere said:

spot1034 said:

Presumably no one would want to enter the market right now but might it be the case that when wholesale prices drop to more reasonable levels, a new entrant unencumbered by losses might be able to offer more attractive rates? I appreciate that the costs of bailing out customers of failed companies will be shared amongst all consumers, but suppliers who have been forced to offer the SVT to existing customers coming off fixes will be wanting to claw their losses back by building it into future prices. Is this an opportunity, or is there a reason why it wouldn't work like that? 

I'm guessing that the old guard have suitably segmented operations so that bits of it can go selectively bust, e.g. the consumer suppler could go bust without taking down the other parts of the business.

In fact wasn't Neon Reef something like this, where somehow customers got shunted over to it from another company?

BP.... Pure Planet?

QrizB

Gerry1 said:

wittynamegoeshere said:

spot1034 said:

Presumably no one would want to enter the market right now but might it be the case that when wholesale prices drop to more reasonable levels, a new entrant unencumbered by losses might be able to offer more attractive rates? I appreciate that the costs of bailing out customers of failed companies will be shared amongst all consumers, but suppliers who have been forced to offer the SVT to existing customers coming off fixes will be wanting to claw their losses back by building it into future prices. Is this an opportunity, or is there a reason why it wouldn't work like that? 

I'm guessing that the old guard have suitably segmented operations so that bits of it can go selectively bust, e.g. the consumer suppler could go bust without taking down the other parts of the business.

In fact wasn't Neon Reef something like this, where somehow customers got shunted over to it from another company?

BP.... Pure Planet?

No, wittyname is right; a number of Utility Point electricity-only customers were transferred to Neon Reef without their explicit consent.

See eg.:
https://forums.moneysavingexpert.com/discussion/6240734/utillity-point-to-neon-reef

Gerry1

QrizB said:

Gerry1 said:

wittynamegoeshere said:

spot1034 said:

Presumably no one would want to enter the market right now but might it be the case that when wholesale prices drop to more reasonable levels, a new entrant unencumbered by losses might be able to offer more attractive rates? I appreciate that the costs of bailing out customers of failed companies will be shared amongst all consumers, but suppliers who have been forced to offer the SVT to existing customers coming off fixes will be wanting to claw their losses back by building it into future prices. Is this an opportunity, or is there a reason why it wouldn't work like that? 

I'm guessing that the old guard have suitably segmented operations so that bits of it can go selectively bust, e.g. the consumer suppler could go bust without taking down the other parts of the business.

In fact wasn't Neon Reef something like this, where somehow customers got shunted over to it from another company?

BP.... Pure Planet?

No, wittyname is right; a number of Utility Point electricity-only customers were transferred to Neon Reef without their explicit consent.

See eg.:
https://forums.moneysavingexpert.com/discussion/6240734/utillity-point-to-neon-reef

No, I meant the Old Guard bit...