How many energy companies are there?
sevenhills
Posts: 5,881 Forumite
in Energy
How is competition going in the energy market?
How many companies are there, are there more than 2/5/10 years ago?
I recall a energy company going bust and one of the reasons sited was the energy cap, if xxxxcompany has a cash flow problem, they can no longer hike there prices for a month to resolve there problem.
Of the energy companies that have gone bust, what has been the cause?
How many companies are there, are there more than 2/5/10 years ago?
I recall a energy company going bust and one of the reasons sited was the energy cap, if xxxxcompany has a cash flow problem, they can no longer hike there prices for a month to resolve there problem.
Of the energy companies that have gone bust, what has been the cause?
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Comments
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1) Fine I think.
2) About 50.
3) Since the energy cap only came in this month I doubt it was the sole cause of failure of any supplier.
4) Usually because they ran out of money, is typically the reason why any company goes out of business.0 -
sevenhills wrote: »How many companies are there, are there more than 2/5/10 years ago?
circa 70 currently (73 last summer)
only 12 10 years ago.0 -
Neil_Jones wrote: »3) Since the energy cap only came in this month I doubt it was the sole cause of failure of any supplier.
4) Usually because they ran out of money, is typically the reason why any company goes out of business.
Chris Gauld, the chief executive of the 11-year-old company, said this week: “There is little doubt that these are difficult times in the industry. You only have to open the newspapers to see coverage of how the price cap and wholesale costs are impacting suppliers, big and small, across the country.”
https://www.theguardian.com/environment/2018/nov/23/spark-energy-goes-bust-and-leaves-290000-without-a-supplier0 -
Prior to privatisation there were 12 regional electricity boards and 12 regional gas boards. There was no need to keep switching supplier, no plethora of different tariffs, no need for comparison sites and no need for cash-back sites.
Simpler (and cheaper?) times.0 -
According to the BBC today, another 5-10 energy firms could go tot he wall in the next few months..
https://www.bbc.co.uk/news/business-468386890 -
sevenhills wrote: »Of the energy companies that have gone bust, what has been the cause?
The cause was in part the "Beast From The East" which caused a spike in demand which in turn cause an increase in prices on top of the already increased prices.
For the near future, if the current weather prediction of "Beast From The East 2" at the end of January 2019 is accurate it's probable that there will be a further increase in prices and yet more small suppliers biting the proverbial dust! If we think that will happen then it's prudent to go with a fixed tariff with a larger supplier such as Bulb or even the big six.
https://blog.metoffice.gov.uk/2019/01/03/is-there-another-beast-from-the-east-on-the-way/0 -
According to the BBC today, another 5-10 energy firms could go tot he wall in the next few months..
https://www.bbc.co.uk/news/business-46838689
At its peak there were more than 70 businesses vying for domestic customers. That has fallen to 60.0 -
According to a report on BBC's Moneybox programme this afternoon, OFgem has so far issued 190 licences for the supply of energy, of which I think they said 70 are currently in use.
That means there is a potential for a further 120 suppliers to enter the market.
What was interesting was the comment that some of those licences have been issued to people associated with failed suppliers - will Ofgem inform us when whoeveritis starts offering supplies under a new licence despite having failed previously?
Also, why don't Ofgem remove such licences and bar people associated with failed suppliers from holding a licence?0 -
According to a report on BBC's Moneybox programme this afternoon, OFgem has so far issued 190 licences for the supply of energy, of which I think they said 70 are currently in use.
That means there is a potential for a further 120 suppliers to enter the market.
What was interesting was the comment that some of those licences have been issued to people associated with failed suppliers - will Ofgem inform us when whoeveritis starts offering supplies under a new licence despite having failed previously?
Also, why don't Ofgem remove such licences and bar people associated with failed suppliers from holding a licence?
Well that sounds all rather confusing as there are separate supply licences for gas and electricty, and some suppliers only have one licence.
But there are certainly more than 70 licences being used at present on the basis there are separate licences for gas & electricity.
Ofgem were reported 2 days ago saying there were over 80 suppliers in the energy market.
source:
https://www.telegraph.co.uk/business/2019/01/10/ofgem-chair-admits-many-energy-suppliers-unsustainable/
If anyone is interested, they can obtain lists of all those companies licences have been supplied to from the Ofgem website0
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