Excellent!

GB Energy Supply, which only months ago boasted the cheapest fixed-rate deal on the market, has ceased trading.

The low-cost energy supplier, which is believed to have had around 160,000 customers, moved to reassure customers that they will not be cut-off following the announcement.

That’s what happens in a competitive market:

GB Energy Supply, which is the first domestic energy supplier to go out of business in a decade, blamed the “swift and significant increases” in energy prices in recent months for halting operations.

Perhaps not quite so good for:

Rachel Fletcher Ofgem’s Senior Partner for Consumers and Competition said: “In any competitive market companies will fail, this is why we have procedures in place to ensure customers’ energy supplies are always secure.

The reverse also applies. That people are going bust is an indicator, although not a proof, that we’ve got a competitive market going on.

10 thoughts on “Excellent!”

  1. The market doesn’t work. I can’t subscribe to a supplier that uses gas and coal generation only, and pays no Greed subsidy.

  2. Only an academic, hypothetical success for “markets” I think. The putrid cesspool of subsidy and bizarrely rigged generation costs combined with short term tactical price manipulation by predatory large corporates is not working well at all in delivering real utility to the buyers.

    The energy market is bollocks – just have a look at the latest effort in discombobulating shit that BIES has squeezed out. (NALOPKT) – and the subsidy trough is overflowing too.

    If the energy “market” wasn’t insanely rigged and thoroughly corrupt then I would be able to buy non renewbabble gas and electricity just like the sanctimoniously “green” feckwits can buy certified “blessed energy”….

    just saying

  3. […] the cheapest fixed-rate deal on the market. […] Watson said: “As a small supplier our inability to forward buy energy …”

    You’ve got customers paying a fixed price, suppliers charging you a variable rate, and no ability to hedge. That’s not a business: that’s gambling.

  4. “The reverse also applies. That people are going bust is an indicator, although not a proof, that we’ve got a competitive market going on.”

    Can’t be.

    Because everyone in the the UK is being ‘ripped off’ by energy companies (holiday companies, phone companies, airlines, supermarkets, etc).

  5. John B,
    It’s perfectly possible to be ripped off in a competitive market. Competition is necessary but not sufficient: consumers can expect to get ripped off if they don’t shop around. That applies to any market: energy, telecoms, used cars, anything. We hear plenty of calls from the Left to nationalise energy supplies; but they’re surprisingly quiet on the potential for rip-offs at (for example) second hand car dealerships.

  6. I agree on subsidies. German subsidies and priority given to renewables is putting enormous pressure on other sources of electricity.

  7. @Machiavelli & @tomo
    I agree – I’ve sometimes thought of ringing up come of the big names and asking where I can find their “reliable” tariff – ie one not including wind. But I guess I’d not get far !
    of course, if someone is telling you that they are on a “green” tariff, ask them what they do when the power goes off. They’ll almost certainly give you a blank look, and you can then explain that they are simply being sold greenwash, and how if they were genuinely on a green tariff then their lights would go off when the wind wasn’t blowing.
    Since they’ll probably have to admit that their power doesn’t go off, then you can point out that they are just as reliant on nuclear and coal as the rest of us – and if they protest otherwise then point out what hypocrites they are.
    At work, one of our customers is involved in windmill schemes – it’s “difficult” when I have to deal with them, since with my work hat on I can’t tell the boss (who has just swapped her Toyota Pious for a Honda Greenwash (or whatever it’s called)) what I really think. She already won’t talk to one of my colleagues !

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