Two more Energy Suppliers Go Under

  • 9 September 2021
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https://www.current-news.co.uk/news/ofgem-confirms-collapse-of-two-further-energy-suppliers

 PfP Energy and MoneyPlus Energy are to cease trading.

PfP Energy supplies gas and electricity to around 80,000 domestic customers and 5,000 non-domestic customers, while MoneyPlus Energy supplies gas and electricity to around 9,000 domestic customers.

More details in above link, Ofgem will  appoint a supplier of last resort.

It will  be interesting to see whether the reasons for collapse are linked to inability to pay the Rego obligations


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It’s always a sad moment to see other suppliers cease trading. :slight_frown:

Heart always goes out to all the staff who have been impacted, too. 

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Don’t forget the hassle for the customers, suffering because a company tried to do things on the cheap with unsustainable offers, and now OFGEM dollops them into a company they probably don’t want to be with and they have to start searching again. Anybody any idea how many energy companies have folded in the past 5 years?

In January/February 2021 22 suppliers went out of business, affecting 410,000 households - more households than were affected in the entirety of 2020 (largely due to Green Network Energy’s collapse) - this year’s been a bloodbath in the energy sector.

One thing I did find of interest was that Green Network Energy had 109 different tariffs at the point it collapsed, which must have been a nightmare to administer - if you assume no tariff was fixed for more than two years, that means they were releasing a new tariff at least once a week.

In January/February 2021 22 suppliers went out of business

Okay, I don’t know where the website which gave me that got it from, here’s a list from Jan 2019 to now according to Citizens Advice, of companies which either closed, or were bought out.
 

Company gone bust/bought out by other supplier/ New Supplier  Date
PfP   Sep-21
MoneyPlus Energy    Sep-21
HUB Energy E.On Next Aug-21
Simplicity Energy British Gas Feb-21
Green Network Energy EDF Feb-21
Yorkshire Energy (also known as Daisy Energy) Scottish Power Dec-20
Green Star Energy Shell Energy Nov-20
Tonik Energy Scottish Power Oct-20
Bristol Energy (domestic customers only) Together Energy Sep-20
Robin Hood Energy British Gas Sep-20
Ebico British Gas Sep-20
White Rose Energy British Gas Sep-20
CitizEn Energy British Gas Sep-20
RAM Energy British Gas Sep-20
Angelic Energy British Gas Sep-20
Beam Energy British Gas Sep-20
Fosse Energy British Gas Sep-20
LECCy British Gas Sep-20
Southend Energy  British Gas Sep-20
Your Energy Sussex British Gas Sep-20
Great North Energy British Gas Sep-20
Go Effortless Energy Octopus Energy Sep-20
Bristol Energy (non-domestic customers only) Yu Energy Aug-20
Spark Energy SSE Jul-20
Foxglove Energy Outfox the Market Jul-20
Economy7Energy Outfox the Market Jul-20
nPower E.ON Next Summer 2020
GnERGY Bulb Mar-20
TOTO by EDF Utilita Mar-20
iSupplyEnergy EDF Energy Mar-20
Engie Octopus Energy Jan-20
Better Energy (gas only) PFP Energy Dec-19
Breeze Energy British Gas Dec-19
TOTO EDF Energy Oct-19
Rutherford Energy - trading as Uttily Total Gas and Power Oct-19
Eversmart Utilita Oct-19
Co-op Energy Octopus - under Co-op name Oct-19
Flow Energy Octopus Oct-19
GB Energy Octopus Sep-19
Solarplicity EDF Energy Aug-19
Cardiff Energy Supply SSE Aug-19
Avid Energy Nabuh Energy Jul-19
SSE SSE (OVO Energy) Jun-19
Brilliant Energy SSE Mar-19
Our Power Utilita Jan-19
Economy Energy Boost (prepay customers)  
  OVO energy (all other customers) Jan-19
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@Gwyndy 

It’s a harrowing list for both employees and consumers alike

I thought the two which went to Outfox were owned by the same people anyway…

I I may be mistaken but no matter.

Mergers, meh, but when a supplier of last resort is appointed, the stress for consumers is awful.

 

@Gwyndy

It’s a harrowing list for both employees and consumers alike

I thought the two which went to Outfox were owned by the same people anyway…

I I may be mistaken but no matter.

Mergers, meh, but when a supplier of last resort is appointed, the stress for consumers is awful.

 

I don’t know, they don’t really break the list down beyond that.

I’ll be honest, I’m torn, my friend always searched by ‘who’s the cheapest’ and then suffered at least 2 companies going under on him - so he only really had himself to blame for putting price above all else.

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Just out of interest I thought Outfox was owned/run by the same person who runs all those allegedly dodgy but very cleverly written electric heating ads in the papers. (Fischer) 

I’m surprised they’ve survived so far given what happened to them when they started increasing prices. Interestingly their customers hated the winter summer split and were unable to see it as anything other than a price rise and being ripped off. The issue was not that they shouldn’t have had either (the rises or the split) but the way they promoted themselves in the first place - it’s a long story and not for here.

 I daren’t write what I’m thinking but lets put it this way, they ended up with an angry demographic of consumers because of the way they marketed themselves, and that came back to bite them.

I would have put money on them not surviving, but credit where credit is due (for surviving)…so far….

 

An update to the latest ones https://www.ofgem.gov.uk/publications/ofgem-appoints-british-gas-take-customers-pfp-energy-and-moneyplus-energy

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It is a worrying list. Why so many? It smells of companies being set up, be cheaper than anybody else, draw in lots of customers, good initial cash flows, high directors’ fees and payments to directors’ pension funds and then as it is too cheap it collapses, it always would. 
 

Possibly even Round 2, start again!

PP is heavily in the red but at least it is supported by BP. In the red because of what they have lent no doubt.

Just out of interest I thought Outfox was owned/run by the same person who runs all those allegedly dodgy but very cleverly written electric heating ads in the papers. (Fischer) 

 

I did some digging @woz 

In 2019, Fischer Energy (founded 2017) rebranded as Foxglove Energy, before changing its name to Outfox the Market in 2020, presumably ‘Economy7Energy’ (or Eco7Energy, or EconomySevenEnergy - there seem to be variations of the ‘branding’) did the same thing? It appears that it was in some way shape or form linked to the customers ‘encouraged’ to buy ‘Fischer Future Heat’ storage heaters, as a number of customers on TrustAdvisor state they signed up after having the heaters installed.

Fischer Energy was owned by Keith and Maria Bastian (also owners of Fischer Future Heat) -I love one of the write ups
‘They started the company with the intent to rectify the sad state of customer service in the energy industry. The couple continues to own the company (now known as ‘Outfox the Market).’

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Just out of interest I thought Outfox was owned/run by the same person who runs all those allegedly dodgy but very cleverly written electric heating ads in the papers. (Fischer) 

 

I did some digging @woz 

In 2019, Fischer Energy (founded 2017) rebranded as Foxglove Energy, before changing its name to Outfox the Market in 2020, presumably ‘Economy7Energy’ (or Eco7Energy, or EconomySevenEnergy - there seem to be variations of the ‘branding’) did the same thing? It appears that it was in some way shape or form linked to the customers ‘encouraged’ to buy ‘Fischer Future Heat’ storage heaters, as a number of customers on TrustAdvisor state they signed up after having the heaters installed.

Fischer Energy was owned by Keith and Maria Bastian (also owners of Fischer Future Heat) -I love one of the write ups
‘They started the company with the intent to rectify the sad state of customer service in the energy industry. The couple continues to own the company (now known as ‘Outfox the Market).’

@Gwyndy  thanks, I’d researched them a while back hence what I wrote, I’m quite surprised they’ve survived after what happened to them a couple of years back or so. 

The next few months will really shake up the market.

https://www.telegraph.co.uk/business/2021/09/09/ireland-freezes-power-exports-uk-energy-costs-rocket-tenfold/

I hope that’s a misprint and they mean £230 a Mwh!

Just out of interest I thought Outfox was owned/run by the same person who runs all those allegedly dodgy but very cleverly written electric heating ads in the papers. (Fischer) 

 

I did some digging @woz 
 

 I’m quite surprised they’ve survived after what happened to them a couple of years back or so. 

 

Having read all of that @woz, I have a very low opinion of whatever steps OFGEM takes to ensure the suitability of the owners of various energy companies.

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It is a worrying list. Why so many? It smells of companies being set up, be cheaper than anybody else, draw in lots of customers, good initial cash flows, high directors’ fees and payments to directors’ pension funds and then as it is too cheap it collapses, it always would. 
 

Possibly even Round 2, start again!

PP is heavily in the red but at least it is supported by BP. In the red because of what they have lent no doubt.

pp heavily in the red doesn’t sound good 😟 

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pp heavily in the red doesn’t sound good 😟 

Many new companies carry a lot of debt in their early years and are dependent on shareholder funds and third party funding. They look at the longer term knowing or believing that business will build sufficient to remove the borrowing or create a size that is attractive to another investor who buys them out letting the shareholders make a lot from the shares and only pay tax at 10% on the capital gain from the share sale.

For new companies difficulties arise as they develop for experience teaches and they see other things they can add on to what they do but funds are tight to do it. Expand too quickly and you are in trouble.

But then there are those who look on what they are doing as a short term venture to draw out large salaries and increase their own pension funds knowing that it will collapse eventually.  The creditors don’t get paid but the former directors start again doing the same thing free from the old debt. Looking at the number of failed energy companies in such a short time speaks volumes.

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I've just seen yet another two energy suppliers gone bust. People's Energy and Utility Point.

https://www.dailymail.co.uk/money/bills/article-9989689/Utility-Point-Peoples-Energy-goes-bust-half-million-customers-told-sit-tight.html?adobe_mc=TS%3D1631639333%7CMCAID%3D2F8251A2051585D8-40000617236EEABE.

Scary times

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@Duppy Two more down. There is another concern never mentioned. Who pays the credits back to those in credit? Ofgem ensure anybody in credit is refunded but if we assume the cupboard is bare who is picking up the bill? The other companies I assume with some sort of fee paid to Ofgem - I am assuming - if that is correct, well somebody picks the bill up, then ultimately it is, the customers. So we all pay for those trying to do things too cheaply. 

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In January/February 2021 22 suppliers went out of business, affecting 410,000 households - more households than were affected in the entirety of 2020 (largely due to Green Network Energy’s collapse) - this year’s been a bloodbath in the energy sector.

One thing I did find of interest was that Green Network Energy had 109 different tariffs at the point it collapsed, which must have been a nightmare to administer - if you assume no tariff was fixed for more than two years, that means they were releasing a new tariff at least once a week.

😲 wow!

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@Gwyndy I find that very suspicious. Hopefully the Dept of Trade will investigate and take action if warranted. So often we have customers and potential customers coming into the forum to tell us they can get it cheaper elsewhere. Often they have some a proper comparison and made sure the quote is a like for like and often it seems the cheap companies collapse. Not surprising. We may well see a time when Ofgem insists on evidence that new starts are properly capitalised,not just for starting up but have long term support, such as that from BP and others.

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People’s Energy had (at least on paper) a good ethical stance and intentions (to address fuel poverty being one of their claims) , and I believe over 350,000 customers. Not to mention the poor staff. 

Between the two companies it must have been getting close to half a million.

This exposes what complete disarray the energy market is in and what nonsense it is to tell consumers to switch to keep their energy prices in check. It frustrates me beyond words that the government are still spouting the same old mantra.  

It’s a zero sum equation, for energy companies to survive they have to at least break even after paying their costs, which are energy contracts, Regos (where applicable), customer defaults and staff/premises.
This price volatility is just a catalyst for the inevitable when the analysts  fail to guess correctly.  

 At what point does it get to be like the banks where they are too big to fail? 

and @Duppy yes one way or another we are paying for it.

It’s sobering to think that the PP analysts who  came up with the current 12 month fix, unpalatable as it is, probably got it right for the company (whilst frightening most of the customers)

I’m not sure if there’s a new thread for this, but two more, Avro Energy, and Green (Supplier Limited) have been announced today.
Avro supplies around 580,000 households, while Green supplies around 255,000 homes,

 

In further, they haven’t gone yet, but they may be soon news:

OFGEM have told Colorado Energy, Igloo Energy Supply Limited, Neon Reef Limited, Symbio Energy, and Whoop Energy Limited, that if they don’t pay their FIT obligations (which were due last Friday), their licences will be withdrawn.

 

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Another example of the additional costs that suppliers have to contend with. This as well as now being forced to sell energy for less that it costs to procure, being unpaid tax collectors of the green levies and Vat etc will result in even more suppliers going under

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Recently announced,. Three more energy suppliers have today confirmed they have gone bust amid record high gas prices, UK energy watchdog Ofgem has announced.

Energy suppliers Enstroga, Igloo Energy and Symbio Energy - who collectively provide services for more than 230,000 people - - confirmed the news via the national regulator this afternoon

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Today’s table of recent deaths:

 

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Bulb is the next rumoured to be going :( 

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