The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

UK's big energy suppliers eye bankrupt provider's 160,000 customers

Mon, 28th Nov 2016 16:55

* Lots of interest in supplier tender - Ofgem

* GB Energy no longer trading after price rise, inability tohedge

* Those without trading partner, production are at risk

By Karolin Schaps and Susanna Twidale

LONDON, Nov 28 (Reuters) - Britain's biggest energysuppliers have submitted bids to take over 160,000 customersleft behind by bankrupt energy provider GB Energy, whichcollapsed on Saturday after being caught out by rising marketprices.

All of Britain's Big Six energy suppliers, EDF Energy, Innogy's Npower, E.ON, ScottishPower, SSE and Centrica's British Gas,have submitted bids in a tender run by regulator Ofgem to supplyGB Energy's customers, sources familiar with the matter said.

Npower confirmed it had submitted a bid. Centrica, EDFEnergy, SSE, E.ON and Scottish Power declined to comment.

"We've had lots of interest (in the tender)," said aspokeswoman for Ofgem, which has up to 14 days to choose a newsupplier for GB Energy's customers.

GB Energy said on Saturday that it was no longer tradingafter a quick rise in energy prices and its inability to forwardbuy energy meant its business had become untenable.

In recent months, energy suppliers had grown increasinglyconcerned about the possibility of a small supplier going underas wholesale power and gas prices have spiked ahead of thepeak-demand period in winter.

"Those which don't have the backing of a large tradingpartner or their own generation sites could be vulnerable," saidJuliet Davenport, chief executive of green energy supplier GoodEnergy, which has its own power production.

Good Energy has not submitted a bid to take over GB Energycustomers, a spokesman said.

Many smaller energy providers, such as First Utility or OvoEnergy, have hired established trading businesses, in these twocases Shell, to run energy procurement and hedging.

Ofgem updated its rules last month, allowing any supplierstepping in to take over customers of a bankrupt supplier torecoup the cost of reimbursing outstanding customer credits byincreasing energy bills.

Analysts at Moody's said they estimate GB Energy's customerdeposits to be less than 10 million pounds ($12.4 million).($1 = 0.8051 pounds) (Editing by Susan Fenton)

Related Shares

More News
27 Oct 2022 07:30

Shell announces $4bn share buyback as Q3 profits beat expectations

(Sharecast News) - Oil giant Shell announced a $4bn share buyback on Thursday as it posted better-than-expected third-quarter profits.

21 Apr 2022 11:53

Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

15 Feb 2022 15:54

Shell preparing to sell North Sea gas fields - report

(Sharecast News) - Shell is reportedly preparing to launch the sale of its stakes in two clusters of gas fields in the southern British North Sea, par...

7 Feb 2022 10:52

Berenberg nudges up target price on Shell

(Sharecast News) - Analysts at Berenberg slightly raised their target price on oil and gas giant Shell from 2,350.0p to 2,375.0p on Monday, stating th...

31 Jan 2022 10:53

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.