Major energy company failing soon, now bust.

[Catweazle]

A little bird tells me that a major energy company could be going tits-up this week. Not sure what anyone can do about it, but if you can stockpile some fuel now might be a good time, in case panic buying occurs.

[adam2]

I agree. There is no realistic way to store natural gas or electricity, but most other fuels can be stockpiled.

Logs, coal, heating oil, paraffin, bioethanol, CAN be stockpiled and should be if you use these fuels, or could use them. LPG is already in short supply.
Each gas and electricity supplier that goes bust means that their customers are transferred to an alternative supplier, almost always at a much higher rate. It is most unlikely that anyone will lack a gas or electricity supply when their supplier busts, but the higher prices will encourage the use of alternatives.

I also expect an increase in fires and in carbon monoxide poisonings as people put to use ancient and uncertain heating appliances, or misuse more modern appliances.
Also an increase in gas explosions caused by abstraction, and by improvisation with LPG.

BTW "tits up" is regarded as a un PC. MGU is the approved alternative.

[kenneal - lagger]

I looked up MGU and got Motor Generator Unit!! Among other things but nothing seemed relevant.

[adam2]

I looked up MGU and got Motor Generator Unit!! Among other things but nothing seemed relevant.

MGU = Milk Glands Uppermost.

[kenneal - lagger]

[clv101]

One of the big six? Surely they all fall into the too big to fail category. Are we on the brink of a public owned supplier, the 'bad bank' model.

[adam2]

I cant see the government setting up their own energy retailer, or nationalising an existing failed company. Far too much of a political "hot potato"

If such a company was to charge a market price "even for deserving cases" this would be hugely criticised. And also rather pointless as one of the surviving companies could also supply the same customers at a market price.

If instead the retail price was subsidised for "deserving cases" then the cost would be vast and the arguments endless. Better that the "wicked fat cat energy companies" be pilloried for people freezing to death, rather than the government being directly blamed.

Edit to add, despite my forecast, the government HAVE nationalised the failed company in all but name. See following posts for details.

[clv101]

Very roughly, there's a shortfall of approximately £10bn over the next 6 months. Based on difference between rate cap and market, and the number of residential properties.

Assuming folk still heat their houses this winter, someone will pay.

[anotherexlurker]

I am not sure what the going rate for most business customers is , but I noticed that when my supplier (symbio) went bust the new supplier (Eon next) was charging the transferred domestic customers 21p per Kwh but business customers 60p!! per Kwh for electricity. I assume most of the suppliers are trying to limit their losses by "overcharging" business customers.

At present when a supplier goes bust I believe there is a tender process for the other suppliers to take over the customers, I wonder what happens if no one tenders???
My Local calor supplier has not had a delivery for the 2nd week in a row.

[adam2]

At 60 pence a unit, local diesel generation might be economic.
Red diesel is currently about 80 pence a liter.
A reasonably efficient diesel generator will produce about 4 kwh per liter of fuel. So about 20 pence a unit for local generation or about 60 pence a unit for purchased from the grid.
There are of course other costs such as depreciation, servicing and replacement parts. But the economics are starting to look attractive.

Arguably not a long term solution since plans exist to prohibit use of red diesel in generators. With road diesel at about £1-50 a liter, local diesel generation would cost about 38 pence a unit, only a small saving and possibly not worth it.

If even half of the waste heat can be used to displace natural gas at 10 pence a unit, then no contest.

100 liters of white diesel costs about £150.
Produces 400 units of electricity worth £240 if displacing grid power at 60 pence a unit.
And produces 800 units of usable heat, worth about another £80 if displacing natural gas at 10 pence a unit. The actual heat produced will be greater than that, but it cant all be used.

[Catweazle]

No announcement yet, perhaps my "Little Bird" got it wrong

[adam2]

Probably a bit premature, but not completely wrong.

[clv101]

Next 10 days are likely to be cold, high volumes of energy, at record or near record prices... Winter hasn't even technically started yet.

[clv101]

Bulb's blown! 1.7 million customers, by far the biggest so far:

https://bulb.co.uk/blog/bulb-special-administration/

[RevdTess]

Bulb's blown! 1.7 million customers, by far the biggest so far:

https://bulb.co.uk/blog/bulb-special-administration/

First to go into 'special administration' to be run by the govt because too many customers for anyone else to take on...