Nearly a dozen more energy suppliers are on the verge of collapse. Meaning bills are set to soar even higher. This has been determined by the credit risk scores of the remaining electricity and gas suppliers on the market. These suppliers have been deemed ‘maximum risk’, which puts them at imminent risk of collapse.
Bulb – the seventh biggest supplier in the UK went into administration on Monday. More than 20 have collapsed since the start of September, affecting nearly 4million customers. It is estimated that a typical bill could rise again in the early part of next year.
Every time a supplier goes bust the costs to the remaining suppliers who have taken on the customers increase, which in turn makes those suppliers more vulnerable. It’s entirely possible that 50% of the suppliers who were trading at the start of the year will be left standing alongside the big 5 this time next year. As surviving suppliers take on millions of customers from the failing companies their profits are squeezed, which will mean prices will continue rising for the next 12-18 months.
If you are unsure about the stability of your energy provider, contact us now we can help and our advice is free.