Markets in Chaos – #SwitchToLocal!

As you may have noticed, there is complete chaos in the energy market place: energy prices are through the roof, shortages at fuel stations and there’s a growing realisation that depending on imported natural resources isn’t good for the economy, communities or the environment… 

With no fewer than 10 energy suppliers having gone bust in the last 8 weeks alone, leaving over 1.5 million people forced to change supplier, we’ve been taking a look at what has been going on in the wholesale electricity market place.  The picture isn’t great, to say the least, hammering home the need for everyone who can to #SwitchToLocal as soon as possible, and play a role in creating a more sustainable future.

So what is going on?  We wrote recently about the rapid increase in the price of wholesale gas causing energy price hikes, but the crisis of crashing companies has more to it.  Dale Vince, founder of Britain’s greenest energy company and our local energy supply partner, Ecotricity, sums it up like this:

“This is chickens coming home to roost.

“A shed load of new suppliers entered the market in the last few years, all with the same daft business plan, sell energy at a loss to build a big customer base and then put prices up… there will be more failures this winter… in the last two years it’s been a rate of one every six weeks.

“The irony of this for me (there’s always an irony) is that these loss making new entrants set the narrative of energy company rip offs, by providing a false price comparison for the regulator, media and politicians – claiming their price showed how low prices should be. That led to the regulator enforcing a super low price that then imposed loss making on most of the industry.

“Looking at the annual accounts of some of these energy companies illustrates the point – losses running into the hundreds of millions of pounds in some cases (like Bulb) – and it’s hard to see how they turn that around in the super price competitive environment they created. Karma.” 

In this context, we couldn’t be more proud to offer 100% green energy from a stable supply, at a price that’s been calculated sensibly to cover the necessary costs as well as fund investment in more renewable energy production.  Not to mention our surplus going to support projects that directly benefit the local community!  Find out more from the great video here.

Do you have a home or business in the Swansea area? If you would like a quote for a clean, stable local energy supply, please click here or if you have any queries please contact us – we’ll be in touch ASAP.

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