What incentive, if any did Ofgem give to the SOLR’s who took on the previously failed energy suppliers?

  • 22 November 2021
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Does anyone actually know for sure, what incentive, if any did Ofgem give to the SOLR’s who took on the previously failed energy suppliers?

(and would Ofgem tell you if you asked?)

 


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Not really sure there is an incentive scheme. 

If there is one it will be need to be huge now that Bulb has just announced they are going to go into administration. 

P.s @woz  i have never been paid for comments have you ???

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@Mavis1  LOL, I wish I was paid for comments but even if I was paid (which I’m not!) I’m not sure I’d be able to give up my day job...(which incidentally  Covid put paid to.)  

In the interests of full transparency apart from the usual points available to all , and I did get a Hive Camera which was given to me for test and I reviewed it, but anyone could have offered.

(by the way, the post you refer to has now been removed, probably best to leave it there, I’ve replied to the person by DM)

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I’m sorry to be such a sceptic but I simply don’t believe that other companies have taken over failed suppliers with no incentive. If there was likely to be a quick fix (weeks/months) to the energy market crisis I’d be prepared to believe it possible. My suspicion is raised because I just don’t see private companies taking on customers who they know are going to cost them money, unless some sort of deal has been struck; why would they? Even if they were playing the long customer base building game the risks of subsequent churn are very high, after all most if not all of the customers of most of those smaller companies have already switched once.

I’m sure it will eventually come out in the wash...

@woz reading the statutory bits on Ofgem’s site I get the impression Ofgem direct a company to take over a failed supplier, but then it seems they invite suppliers to offer. They use the word “direct” implying a mandatory approach. But that seems wrong for it takes a strong company to be brave enough to take on business that will produce no profit for some time. 
 

Thus you do get the feeling that some incentive exists. You can always do a FOI request! You may get an answer next year or later!

On the other hand many of these companies trade on the basis they make a loss all the time!! Just look at their accounts.  Assuming I have read them correctly Octopus Energy show a loss for 2020 of £55.5 million. Their balance sheet shows a deficit of £89.9 million. Ofgem are clearly happy with this!! 

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@G4RHL 

I strongly suspect that those companies who “tendered” for the business will have included a per customer “supplement” in the deal.
If so there is little difference between that and bulb being bailed out by taxpayers, it’s just less transparent. Once again I must add that I’m not trolling or accusing, I’m speculating.

We ought to do an FOI request!

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or better still find a journo who wants a story (if there is one)

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