Supplier failures could add £45 to household bills

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energy bill for all families and can increase to £45 Britain Just to reduce the cost of suppliers, according to a new estimate.

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Experts at energy consultancy BFY Group said suppliers who pick up pieces from recent failures could claim around £1.3bn in spending from British households.

On Wednesday, two more suppliers, between whom there were about 250,000 customers, went out of business.

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Nearly two million homes have seen their energy supplier collapse since the beginning of September.

industry regulator offgame Most of those homes have already hired new suppliers, but being the so-called supplier of Last Resort doesn’t come cheap.

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Companies tasked with supplying these customers have to buy energy they think homes will already use – a process known as hedging.

But the same gas price increases are causing energy suppliers to fail, which will make it costly for replacement suppliers to pick up the pieces.

/ PA Graphics

Hedging 12 months ago is currently nearly twice as expensive as it was a year ago, and buying gas for the winter months is five times the old price.

Last-resort suppliers can apply to Offgame to claim some of the costs they incur during the process.

BFY estimates that the money claimed could reach £630 for each of the two million families of suppliers that have failed so far, with a total of approximately £1.3 billion.

This cost will be added to the bills for all UK households, with an average cost of £45 each.

This will help raise the energy price range from today’s £1,277 to approximately £1,600, according to BFY’s calculations.

But more is likely to come.

Several other suppliers are facing difficulties, and some industry insiders have estimated that another two million, or even more, households could see their energy supplier fail in the coming weeks and months.

This will put even more burden on the suppliers and eventually on the domestic bills.

BFY said suppliers are also facing pressure from their own customers who are coming to the end of their fixed-term energy deals.

Usually they shop around for a better deal, but the cheapest option at the moment is their current supplier’s price cap tariff.

But energy firms will suffer major losses from these customers, as the price cap is less than the cost of suppliers to buy the energy that customers will need.

The price range is expected to rise sharply in April, but by then the companies will be making big losses on the gas they provide to the customers.

Ian Barker, managing partner at BFY, said: “Suppliers who are able to weather the storm are facing £1.7bn to £2bn in losses over the next six months for customers who do not switch and It is advised to continue. Price range with their current supplier.”

The manufacturing giant’s boss on Thursday INEOS has warned that gas prices will remain high all winter, potentially forcing the industry to shut down.

ITV’s Peston, Sir. appearing on Jim Ratcliffe Said that the lack of storage in the UK has made it vulnerable.

Asked if the country could shut down due to prolonged cold, he replied: “Yeah, what would you do if you shut down the industry.”

He said: “Four years ago, when we had, if you remember, The Beast from the East, we were within a day or two of running out of gas in the UK.

“It would have been a disaster if we ran out of gas, you know, old people who couldn’t get home heating, for the industry that would have to shut down. But we were within days, and we made that point. “

Labor leader Sir Keir Starmer said his party wanted the government to “come out of hiding” and work with business on the issue.

He added: “He’s thrown out of office. While other countries are stepping up and acting, Britain is sitting behind surprisingly complacent.”

The Department for Business, Energy and Industrial Strategy said ministers and officials are engaging with industry “to help mitigate and understand the effects of high global gas prices”.

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