'At what stage will there be a tipping point?This is likely to be the question currently occupying much of the energy industry and government alike,' writes HelenAnnSmith0
A million customers are already finding themselves having to move to new suppliers, and it seems certain that there will be more.
And we can be pretty sure there are more to come.Kwasi Kwarteng, the business secretary, insisted in front of the business, energy and industrial strategy committee this morning that these systems are"robust", but acknowledged they would be"tested" in the coming months.
There is clearly a reluctance to throw taxpayer's money at the problem.He said repeatedly that the industry must first"look to itself" for solutions.His reluctance may be understandable: the conception that these failed firms offered deals that were fine during the good times, but too good to be true when the whole price rose - while also failing to hedge - is pervasive.Read more: Sky News »
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HelenAnnSmith0 4pm weekdays
Avro and Green join suppliers quitting household energy market amid gas crisisBetween them they supply 2.9% of the UK’s domestic energy customers.
Igloo on brink of collapse as energy supplier casualty list mountsIgloo is working with Alvarez & Marsal on its options as another insolvency looms in Britain's crisis-hit energy supply market, Sky News understands. Funny it's the companies marketed as being eco friendly that are going out of business over the price of gas!
Gas giants may face windfall tax as energy crisis hits householdsAnother 800,000 households fall victim to energy crisis as Avro Energy and Green collapse Sounds like my ex. Mother in Law. Watch your ass Neptune, Uranus, Saturn, and Jupiter We will believe it when we see it
Energy crisis exposes deep flaws in Britain’s ‘seat of the pants’ economy'Boris Johnson had better just pray that it is a mild and windy winter. A cold and still one might yet floor him' | Writes JeremyWarnerUK JeremyWarnerUK Or: Low Pressure means low pressure; HIgh Pressure means high pressure
Two more energy suppliers go bust as Kwarteng considers windfall taxAvro Energy and Green become the latest casualties of the crisis as Business Secretary says he is 'looking at all options'
Will the demise of small energy suppliers kill price competition?Analysis: The failures of Green, Avro and more shook the market, but the survivors may emerge healthier
Add that to the customers of other firms that have gone under this month, and we're already looking at in excess of a million people being taken on by suppliers like British Gas. And we can be pretty sure there are more to come. Kwasi Kwarteng, the business secretary, insisted in front of the business, energy and industrial strategy committee this morning that these systems are"robust", but acknowledged they would be"tested" in the coming months. There is clearly a reluctance to throw taxpayer's money at the problem. He said repeatedly that the industry must first"look to itself" for solutions. His reluctance may be understandable: the conception that these failed firms offered deals that were fine during the good times, but too good to be true when the whole price rose - while also failing to hedge - is pervasive. Mr Kwarteng has also staked his claim to be firmly on the side of consumers in this crisis - and needs to be seen to be putting their interests first. Please use Chrome browser for a more accessible video player Energy boss: It's 'crunch time' for many small providers But there may well come a point where there is no longer a choice, when even the bigger firms can't afford all these new customers within the current regulatory framework. In that case there are options: a"bad bank", or government-backed loans to energy firms to name just a few. Some energy companies have called for a removal of the price cap, but that would be politically very difficult and thus seems unlikely. The reality is that even if the government does intervene, millions of consumers will face higher bills as the winter sets in - not just those whose suppliers collapse, but also those on standard variable tariffs (the cap is going up in October) and those coming to the end of fixed term contracts. Mr Kwarteng has insisted consumers will be protected, but many may feel that depends on how you define"protection". In the face of bills going up by an average of 25%, on top of a national insurance hike, inflation, the end of the furlough scheme and the end of the universal credit temporary uplift, many are facing a very difficult winter.