• 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
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 35 mins How Far Have We Really Gotten With Alternative Energy
  • 11 hours If hydrogen is the answer, you're asking the wrong question
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 24 hours Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 5 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)

Energy Crisis Claims Its Biggest Victim In The UK Yet

The energy crisis and soaring wholesale power and natural gas prices claimed its biggest victim so far in the UK when Bulb, a power and gas supplier serving 1.7 million customers, said on Monday that it would enter into special administration.

Bulb, the supplier founded in 2015, became the latest in a series of some 20 energy providers in the UK that were forced to exit the retail energy market amid unsustainably high wholesale prices for natural gas and electricity.

Gas and electricity prices have surged in recent months in the UK and the rest of Europe amid an energy crunch that sent prices spiking and boosted inflation.

Since the energy crunch began in September, more than a dozen power and gas suppliers in the UK have exited the retail energy market, and more are likely to do so. 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, Keith Anderson, chief executive at one of the largest providers, ScottishPower, said last month.

In a statement on Monday explaining its decision to enter special administration, Bulb said that while searching for fundraising options, “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,” the company said.

Bulb’s businesses in France, Spain, and Texas will continue trading as they are separate businesses from Bulb UK and are not immediately affected by it entering special administration in the UK.   

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | 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