Energy crisis brings price war to an end, says Utility Warehouse Chief

Andrew Lindsay said energy supplier collapses reflect a flawed policy of ‘competition at all costs’

The head of Utility Warehouse today criticised the energy regulator’s flawed policy for the current market conditions that force many suppliers to go under.

Bulb was the latest victim of the crisis that has hit the UK energy market since the early days of September.

In the last fortnight, Ofgem has received fierce criticism for allowing undercapitalised startups to enter the market.

In the company’s half-year results presentation, Andrew Lindsay, Co-Chief Executive of Utility Warehouse, said: “The recent energy crisis has brought a seven-year destructive price war to an abrupt end and the subsequent spate of energy supplier failures has demonstrated the inherent flaws in the regulator’s policy of ‘competition at all costs’.

Consumers now face a cost running into billions of pounds to tidy up the mess, so we welcome Ofgem‘s commitment to prevent this situation from happening again and to create a retail market that allows sustainable competition between suppliers, whilst enabling us to meet the challenges of the transition to net zero together.

Last month, Ofgem launched a review into how the price cap on gas and electricity bills  is calculated. 

An Ofgem spokesman told ELN: “The global unprecedented gas prices continue and this supports our need to build an energy market that is more resilient, whilst continuing to offer dynamism, innovation and choice.”

“Our duty is to protect consumers- which we are constantly doing. We also recently published a letter to suppliers making sure they have a sustainable business model, minimising risks to customers and the market as a whole, and we are consulting on enabling the price cap to respond flexibly to exceptional changes in the future.”

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