Utility supplier gone bust.

THIS^^^ is what I was thinking. My Utility Point fixed rate was far better than the new provider (which is presumably now supplying me at the current capped rate until that cap ends/gets reviewed). I'll be a bit ticked off if the government now steps in and keeps some victims on their cushy fixed rates while leaving the rest of us blowing in the wind! Either all failed companies get govt aided or they all get passed onto alternative suppliers under emergency measures.
As mentioned above I am not sure but if bulb buy in on forward contracts it could be there is plenty of 'energy' in bulbs coffers, it's just that they have run out of cash as people panicked due to media speculation over the last few months and withdrew all their cash balances leaving the company with no liquid asset and a rather large debt pile, but I would imagine some will be offset against the forward contracts. There is also the issue of no company willing to take on the debt, no different to Northern rock, if the government hadn't stepped in then the financial system would have collapsed as the run would have extended to every bank, if bulb customers lost their credit then I am quite sure every customer of every energy supplier would rush to withdraw balances which are typically higher as we go into winter.
 
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icowden

Über Member
Location
Surrey
If we scrap the price cap then energy prices will rise even more.
It is true that Bulb’s administrators will have access to public funds to allow Bulb to continue trading, but it can’t be true that Bulb’s customers are being subsidised by the tax payer. Whether your energy is provided by Bulb or not then you are subject to the price cap. No-one has said that Bulb customers will be getting discounted energy due to the tax-payers money that will be available to the company have they?
It's the price cap that has killed the smaller suppliers in the first place. They have to supply energy at a cost well below what it costs them to buy it at.
Bulb is being run by the tax payer, not subsidised by it, although the tax payer will have to stump up for Bulb's loan repayment interest I suspect.

In summary Boris made a mess of energy and killed off all the companies that the conservative government encouraged in the first place. Now the government has reached the point where they have to bail out companies as it's reached the really big ones. This is Bulb's statement:-

The energy crisis
When we started exploring fundraising options, we were delighted to receive lots of interest from investors to fund our business plans and future growth. However, the rising energy crisis in the UK and around the world has concerned investors who can’t go ahead while wholesale prices are so high and the price cap—designed to protect customers—currently means suppliers provide energy at a significant loss.

Wholesale prices have skyrocketed and continue to be extremely volatile. The gas supply shortage combined with lower exports from Russia and increased demand means they remain high and unpredictable. Prices have hit close to £4.00 per therm recently, compared with 50p per therm a year ago. We’ve always been big supporters of the idea of a price cap to protect customers, but the current price cap is set at a level around 70p per therm, well below the cost of energy. The news last week about Nord Stream 2 has sent gas prices back up again. Nord Stream 2 is a new gas pipeline from Russia to Europe which must be approved by Germany and the EU. Last week, Germany suspended its approval process, and there’s growing geopolitical pressure to scrap the project. As a result, the industry has seen many suppliers fail over the past few months and many more are expected to do so over the winter.

Special administration
Special administration is designed to protect the customers of a large energy supplier that’s become insolvent. The special administrator is required by the Government under the 2011 Energy Act to continue to supply energy to customers, and will protect customer credit balances. The process to appoint special administrators is not yet complete but we expect them to be appointed shortly.
Our International businesses in France, Spain and Texas are separate businesses from Bulb UK and are not immediately affected by us entering special administration.
 

midlife

Guru
Personally I like the supplier. Best energy company I have ever been with. Wish I could be so effusive about the government.
Its the Government who have stumped up the £1000 essentially paid to you so you can still have cheap electric….
 

icowden

Über Member
Location
Surrey
Its the Government who have stumped up the £1000 essentially paid to you so you can still have cheap electric….
It's the government who put the cap on to ensure customers had cheap gas and the providers went bust. It's the government who sold off the gas storage that gave protection against price spikes. Its the government who quit a union of 27 countries where another form of protection against fuel cost spikes was available.

So yes. They can cough up. When you make a mess, you clean it up.
 

C R

Guru
Location
Worcester
It's the government who put the cap on to ensure customers had cheap gas and the providers went bust. It's the government who sold off the gas storage that gave protection against price spikes. Its the government who quit a union of 27 countries where another form of protection against fuel cost spikes was available.

So yes. They can cough up. When you make a mess, you clean it up.
I agree with all you said, but the government are using our money to pay for the mess caused by their incompetence.
 
Personally I like the supplier. Best energy company I have ever been with. Wish I could be so effusive about the government.
Me too, but I doubt I have saved, or rather cost anyone 1000 squid in the 4 years I have been with them, let alone the next 6 months.
 
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