• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 9 days Does Toyota Know Something That We Don’t?
  • 3 days America should go after China but it should be done in a wise way.
  • 9 days World could get rid of Putin and Russia but nobody is bold enough
  • 11 days China is using Chinese Names of Cities on their Border with Russia.
  • 2 hours Even Shell Agrees with Climate Change!
  • 11 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 12 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 12 days Putin and Xi Bet on the Global South
  • 12 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
California Startup Boasts Breakthrough in Hydrogen Storage

California Startup Boasts Breakthrough in Hydrogen Storage

Despite challenges, startups like H2MOF…

Green Chemistry Breakthrough: Researchers Create Ethylene from CO2

Green Chemistry Breakthrough: Researchers Create Ethylene from CO2

University of Cincinnati engineers have…

Anti-Oil Activists Shift Focus to Insurers

Anti-Oil Activists Shift Focus to Insurers

Activists have also started attacking…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

UK Energy Suppliers Face ‘Massacre’ Amid Soaring Gas Prices

  • More than a dozen power suppliers in the UK have exited the retail energy market in recent weeks
  • The UK has a so-called Energy Price Cap in place, which protects households from too high bills by capping the price that providers can pass on to them, but which additionally burdens energy providers

Another 20 energy providers in the UK could go bust in what looks like a “massacre” in the coming months unless the government reviews the energy price cap, the chief executive of one of the largest providers said on Thursday.

More than a dozen power suppliers in the UK have exited the retail energy market in recent weeks, and more are likely to do so, as wholesale gas prices rally.

Europe’s tight gas market, low wind speeds, abnormally low gas inventories, and record carbon prices have combined in recent weeks to send benchmark gas prices and power prices in the largest economies to record highs.

The UK has a so-called Energy Price Cap in place, which protects households from too high bills by capping the price that providers can pass on to them, but which additionally burdens energy providers.

Unless the UK government intervenes and reviews for raising the price cap soon, “we are in danger of just sleepwalking into an absolute massacre”, Keith Anderson, chief executive at ScottishPower, told the Financial Times.

“We think probably in the next month at least another 20 suppliers will end up going bankrupt,” Anderson told SkyNews.

The price cap currently costs providers around $6.9 billion (£5 billion), the top executive of ScottishPower, one of the largest utilities in the UK, told SkyNews.

Last month, the head of the UK’s energy regulator said more energy suppliers were set to go bust as soaring gas prices are putting an unprecedented cost burden on smaller electricity and gas providers.

“I think what is different this time is that dramatic change in the costs that those suppliers are facing,” Jonathan Brearley, chief executive officer of Ofgem, the independent energy regulator for Great Britain, said in September.

Back then, Brearley and the UK’s Business and Energy Secretary Kwasi Kwarteng said in a joint statement that the energy price cap would remain in place.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News