The government is under pressure to find ways to mitigate the pain for consumers of the next energy price cap rise. David Blackman looks at the options on the table and gauges expert reaction on which are likely to become a reality.
Analysts at Investec have lowered their forecast for the price cap for the next period beginning in April by almost £100 but said some form intervention is still needed to help those struggling with bills. The investment firm said wholesale gas and electricity prices have eased since it predicted last month that the price cap would rise to £2,000 for the summer period.
Talks between the government and industry over the ongoing energy crisis are not moving fast enough, the bosses of two suppliers have told Utility Week, with Ecotricity chief executive Dale Vince accusing ministers of being “in denial” over the extent of the issue. Vince said they are “hoping presumably that the problem will ease or go away but it isn’t going to.”
Continuing increases to wholesale costs mean suppliers have a greater responsibility to self-balance in the energy market, Elexon’s director of digital operations has said. Peter Stanley was speaking to Utility Week following an announcement by the Balancing and Settlement Code (BSC) administrator that the credit assessment price (CAP) is set to rise to a new record of £259/MWh.
Eon Next will take on the 233,000 customers of three failed retailers as the supplier of last resort, Ofgem has announced. The regulator recently confirmed the failures of Enstroga, Igloo and Symbio Energy.
Sustainability First director Sharon Darcy sets out why the current turbulence in the energy retail sector should be used as a catalyst to create a fundamentally different market and regulatory framework that can deliver a cleaner, greener, and fairer energy system.
Five energy suppliers could be issued with final orders by Ofgem over £7 million in late renewables obligation (RO) payments. The retailers in question are Ampoweruk, Whoop Energy, Goto Energy, Home Energy Trading and Colorado Energy.
Elexon has confirmed following a consultation that the Credit Assessment Price will rise to a record £184/MWh. Since August there have been three increases to the CAP, each representing a new record figure.
A further three energy retailers have ceased trading, leaving another 233,000 customers for the supplier of last resort (SoLR) process. The failures of Igloo, Symbio and Enstroga Energy take the total number of market exits so far this year to 12, exceeding the previous record of nine set in 2019. Igloo's founders said the market had become unsustainable and accused Ofgem of ignoring calls to reform a price cap methodology which "is designed to favour the largest suppliers".
Rising retail and wholesale energy prices combined with cuts to Universal Credit and rising inflation mean that for some vulnerable consumers it’s going to be a cold winter. Jane Gray reflects on the views of experts at Utility Week's Consumer Debt & Vulnerability Conference.
As part of Utility Week’s Energy Reset campaign, we talk to former Ofgem chief executive, Dermot Nolan, about what the current turmoil in the retail market means for the price cap, the Supplier of Last Resort process and whether now is the time to introduce prudential regulation into the sector.
A total of 31 energy suppliers have exited the market via the supplier of last resort (SoLR) process since 2016, with more domestic customers facing SoLR so far in 2021 than the previous five years combined. Utility Week has compiled a list of all 31 failures since 2016, and the suppliers which became the SoLR.
Shell Energy Retail has been appointed as supplier of last resort (SoLR) to the customers of recently failed supplier Green. Shell, which already serves around 900,000 customers, will take on the 255,000 domestic and a small number of business customers.
In our latest review of sector coverage in the media, the nationalisation debate returns. Meanwhile, there is continued coverage of the impacts of wholesale gas price hikes, including analysis of the companies benefitting from the current situation.