My word, yes, this could actually be true

I have already analysed the last available accounts of Bulb. They are not pretty. But, to suggest that they required a capital injection of £1.7bn seems far-fetched, based on what is available on public record.

To put this in context, that level of support amounts to £1062.50 per customer on the basis of the above data, or about half a year’s energy bills for each of them given current prices.

If the government imposed price cap is having that much of an impact then that needs to be stated and the implications for the rest of the market must be spelt out as well.

The impact and implications of that price cap must be spelled out, yes indeedy.

And if support of this scale is required because of the impact of the price cap at a time when wholesale prices remain high, but below their peak, then the obvious implication is that there will be no domestic energy supply companies left in the UK soon because of the losses they must all be sustaining and in that case we face the scenario of a totally failed market rather sooner than I anticipated.

Well, yes, could even be that government setting prices is a damn fool idea. Something to chew upon at least.

10 thoughts on “My word, yes, this could actually be true”

  1. the scenario of a totally failed market rather sooner than I anticipated.
    He’s constantly anticipating this or that market’s imminent failure. That it’s usually as a result of state intervention seems to pass him by every time. Despite him being a complete cunt, he really can’t be so thick he doesn’t see it. Clearly writes for his audience to agree with him and kiss his arse in the process. What a sad life.

  2. The general presumption is that TPTB are just idiots, but what if they’re not?

    An energy crisis was a reasonably foreseeable, and widely foreseen, outcome of the choices they’ve made since the Climate Change Act 2008 if not before. At every step they deliberately chose the options we’d expect our enemies to choose for us.

    What if this is less cock up and more like Islamic mass rape or the lockdowns – the authorities know, but either approve of terrorising the proles or simply don’t care about the carnage they’re creating?

  3. Given that the last accounts Bulb filed were for the year ended 31 March 2020, it is amazing that the great Potato will find anything of any relevance to their current trading conditions therein. I rather suspect that their claim

    “We provide our members with 100% renewable electricity from solar, wind and hydro. And our gas is 100% carbon neutral too”

    was impossible to deliver for the last few weeks. I wonder how much use they made of futures – it has been quite likely that gas prices were likely to rise given the utter stupidity of the policies enacted by Brandon, Putin, Merkel and co

  4. “We provide our members with 100% renewable electricity from solar, wind and hydro. And our gas is 100% carbon neutral too”

    Carbon neutral CH4, C2H6 etc. Nice one!

    Any mug who believed this marketing nonsense about 100% renewables deserves to have their supply cut off.

  5. As philip says, Bulb’s entire existence was based on marketing to the gullible. Although I was told that their customer service was pretty good.
    A trundle through their website betrays their BS. They pump 10% “green gas” into the grid which is biomethane
    So when it’s burned, it only releases that same amount of carbon dioxide. Since it doesn’t add more CO2 to the earth’s atmosphere, it’s a carbon neutral option. Carbon dioxide is a gas, not an accounting trick pumping it into the atmosphere is still an addition.
    And also for every tonne of carbon emitted we will purchase an offset through our partner ClimateCare (a fellow B Corp). These purchases support carbon reduction projects in the developing world.
    So in fact all its green credentials were nothing but smoke and mirrors.
    And their stupid unicorn comnercials got on my tits, too. Sometimes I think that Stalin and Mao had the right idea about the midlle classes…

    This whole price cap introduced by May was a stroke of genius. It has had the predicted and predictable effect of hollowing out the energy market, so that only the big ex-nationalised and foreign suppliers remain and it prevents politicians from getting lynched because their stupid policies would otherwise have caused peoples’ bills to quadruple.

  6. Bloke in North Dorset

    The time to spell out the implications of a price cap was when it was imposed, not when everyone is going bust. It wasn’t rocket science, economic history is littered with examples.

    IIRC all the damned fools did spell out the implications, but they were dismissed as neo-liberal trolls.

  7. His answer to this, as everything, will be Nationalisation.

    Steve, until people start to realise that the Establishment hates them, things will not make sense.

  8. From Spud’s blog

    “I have now resigned from all association with the Fair Tax Mark”

    Yet another group he’s fallen out with.

  9. I was surprised to hear that winner of the Wolfson Economics Prize 2021, announced today, was not Richard Murphy

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