Blog
December Mark to Market equals 8 years of Price Cap profits
At peak, the Mark to Market profit for *just* December was more than 8 years of profit allowed under the Price Cap.
European gas sites at less than 10% of required storage
Some European Gas Storage Sites Are At Less Than 10% Of Required Storage Volumes - Driving Price And Volatility
Potential £2billion impact on well run suppliers
The excess costs (ie losses) to hedge a typical switching sized customer at the price cap are approaching £1,000.
Challenges faced by energy suppliers are greater than the CMA claimed
“All they are actually doing – and I shall get into trouble for this – is metering and billing. They are not making the stuff,”. Words from the head of the CMA's two year investigation in the UK Energy Market according to the Guardian in 2016.
Price Cap predicted to be >£1,555
It's still very early to forecast, but our latest best view is that the April Price Cap will be in the region of £1,555 for a customer using 3,100 of Electricity and 12,000 for Gas.
SoLR levy claims likely to exceed £1billion
I really don't want this to sound clickbait, but there's a real risk of ~£1 billion in claims to the SoLR levy this winter.
Price cap is already loss making before it comes into force
Gas prices are making the Price Cap a loss making tariff. I just wanted to share an extract of some analysis we've been working on.
Should the Price Cap be updated monthly?
What would happen if the OFGEM Price Cap was a monthly tracker? Recap from yesterday: The Price Cap is a loss making tariff at the Gross Margin level, and energy suppliers will need to subsidise customers energy bills.
Covid-19 related customer debt must be addressed now
The UK’s Covid-19 vaccination programme promises to allow some of the related restrictions to be removed within a few months. This is great news but does not mean all our Covid-19 challenges will soon be in the past.
Energy supplier consolidation is inevitable in 2021
UK energy suppliers collectively lost £1bn last year. This year, ongoing intense competition as well as new cashflow challenges, including regulatory initiatives and Covid-19’s impact on customer incomes, will make that loss seem mild. Consequently, we see the trend for energy supplier consolidation continuing and accelerating in 2021.
Billing and complaints remain central to customer service challenge
Two reports just published by Ofgem give great insight into the status of energy supplier customer service and the best area to focus on to improve customer relationships, namely billing and complaints processes.
What does it take to grow an £x00m energy retailer?
At a recent BFY Group client strategy day, we discussed what it takes to grow a £x00m energy retailer. A number of challengers have delivered incredible growth since entering the market, and gained ~1% market share in only four years of trading.
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