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ethariel · 23-11-21, 04:41 PM

The issue being that all the 'Energy Companies' have been taking the consumer for a cash ride for the past couple of decades.

Charging absurd amounts of money on your 'metered unit' compared to the wholesale price and pocketing the difference.

Now that the shoe is on the other foot and the wholesale price is above the maximum allowed consumer unit price and after lining thier pockets for decades and paying off every penny of surplus into dividends and bonuses for board members (not keeping a warchest for hard times) it's far more economical to just fold it all up and let the Gov take the hit. (Then when things stabilise, start all over again when there is money to be made again - rinse and repeat).

Capitalist state at its best/worst

You will probably find the energy companies outside the big 6 that last longest bought options to buy at a specific price point further into the future than the ones that folded early.

Purchasing spot (at the time prices) is often considered risky, so a lot of companies would be purchasing 3, 6 or even 12 months ahead so when that 'relatively cheap 6 month option' runs out it's time to close the doors.

23-11-21, 04:41 PM	#41
ethariel Member Join Date: Jul 2005 Location: London (for my sins) Posts: 806	Re: Bulb energy The issue being that all the 'Energy Companies' have been taking the consumer for a cash ride for the past couple of decades. Charging absurd amounts of money on your 'metered unit' compared to the wholesale price and pocketing the difference. Now that the shoe is on the other foot and the wholesale price is above the maximum allowed consumer unit price and after lining thier pockets for decades and paying off every penny of surplus into dividends and bonuses for board members (not keeping a warchest for hard times) it's far more economical to just fold it all up and let the Gov take the hit. (Then when things stabilise, start all over again when there is money to be made again - rinse and repeat). Capitalist state at its best/worst You will probably find the energy companies outside the big 6 that last longest bought options to buy at a specific price point further into the future than the ones that folded early. Purchasing spot (at the time prices) is often considered risky, so a lot of companies would be purchasing 3, 6 or even 12 months ahead so when that 'relatively cheap 6 month option' runs out it's time to close the doors.