So now OFGEM has said how much we are ALL paying for failed energy firms

ihatetrump

https://www.bbc.co.uk/news/business-60257448

So £68 or nearly 10% of the increase that every one of us is now facing is to cover the cost of the failed energy firms.

So while the shareholders of the likes of AVRO et al continue to live in their mansions built off their ill gotten (and sometime illicit) gains, every one of us will continue to contribute towards the cost of their failures probably not just for one year but for many years to come. 

QrizB

ihatetrump said:

https://www.bbc.co.uk/news/business-60257448

So £68 or nearly 10% of the increase that every one of us is now facing is to cover the cost of the failed energy firms.

That's just the initial part; there will be another charge added in April 2023.

savers_united

But many did save massively with these here today gone tomorrow energy providers. 

You can blame Ofgem regulation but many were happy to save a hundred quid here and hundred quid there, moving each time to a new provider who would undercut the other. 

Even with all this competition and over 70 providers at the peak the big six could rarely get prices that low, and now we know the reason and that is why they are still trading.

Overall its been a good decade for cheap energy. The next decade may not look so good,We are now entering a period of payback. 

ihatetrump

I was a 'rate tart' also - just got lucky in doing some in depth financial research, fixing long just prior to the fertilizer hitting the ventilator.

As @savers_united alludes to, it's going to be a rocky ride ahead for some time to come.

Uxb1

...and "fertilizer" is indeed a relevant word
Food these days needs lots of fertilizer to grow in the quantities that we need
Gas use is a major constituent of fertlizer production costs so wait for the increase in food prices to hit....

BobT36

savers_united said:

You can blame Ofgem regulation but many were happy to save a hundred quid here and hundred quid there, moving each time to a new provider who would undercut the other. 

Ain't that supposed to be the point of Capitalism / "Free Market"? 
Otherwise we may as well just have a single, Ofgem run supplier. Rather than paying a load of French companies. 

jobdone1

BobT36 said:

savers_united said:

You can blame Ofgem regulation but many were happy to save a hundred quid here and hundred quid there, moving each time to a new provider who would undercut the other. 

Ain't that supposed to be the point of Capitalism / "Free Market"? 
Otherwise we may as well just have a single, Ofgem run supplier. Rather than paying a load of French companies. 

Exactly, 

savers_united

BobT36 said:

savers_united said:

You can blame Ofgem regulation but many were happy to save a hundred quid here and hundred quid there, moving each time to a new provider who would undercut the other. 

Ain't that supposed to be the point of Capitalism / "Free Market"? 
Otherwise we may as well just have a single, Ofgem run supplier. Rather than paying a load of French companies. 

The OP was highlighting how much this failure has cost, and I was pointing out that many have benefited for many years of low energy prices, now its all come crashing down.
Yes it is a free market, but when these business fail they bring everyone down with them In terms that we all have to pick up the tab for the damage caused. True capitalism would mean no bailout or SOLR and customers being on their own to sort it out, it's a risk you take, low price higher risk.

The market has failed, it was not a free market just some gamblers who bought low and hoped to sell a little bit higher without any long term plan. 

markin

I think the long term plan for most was to rack up debt, make millions for themselves, and then go bust.

maisie_cat

I see it as those of use who changed every year paying back what we saved over what energy prices should have been.

grumbler

BobT36 said:

savers_united said:

You can blame Ofgem regulation but many were happy to save a hundred quid here and hundred quid there, moving each time to a new provider who would undercut the other. 

Ain't that supposed to be the point of Capitalism / "Free Market"?

Free? Free with price caps?