Energy sector crisis worse than first thought
The energy sector crisis is worse than anyone thought.
A staggering total of 28 companies have gone bust since the start of 2018 as rising wholesale costs and commitments to renewable energy start taking their toll.
In fact, the energy sector set the rather unwanted record of 19 electricity firms going under in 2018, and a further nine collapsing in the first half of 2019.
It feels like every week A Spokesman Said is reporting on a company going pop and reports suggest more than a dozen other energy suppliers could cease trading in the coming months.
There is clearly a big issue in the industry, as Paul Pittman, partner at Price Bailey - the tax firm who obtained the surprising data - points out.
He told The Telegraph: "The collapse of retail energy suppliers is sending shockwaves through the supply chain, pushing suppliers to those businesses into insolvency."
One notable recent example is Toto Energy, which collapsed in October this year.
It left 134,000 customers without a supplier.
But several other large firms have gone bust in the last 18 months.
Mr Pittman added: "These figures lay bare the scale of the problem and show that the most high-profile insolvencies in the energy sector are just the tip of the iceberg."
Apparently the problem really stems from smaller firms, like Solarplicity, being stung by higher wholesale costs.
The energy price cap and their obligations to renewable energy are also making them feel the pinch.
However, many people will hardly be shedding a tear.
Energy prices seem constantly rise and often reach levels that beggar belief.
The idea that a company still can't make money despite the fact that often people have to make a direct choice between turning their heating on or being able to afford food will grate on people.
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