Thread: The energy crisis
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Old 30-09-2021, 21:58   #76
1andrew1
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Re: Energy companies collapse
Quote:
Originally Posted by jfman View Post
Because some products are genuinely best to the free market. But there has to be attributes of an actually free market with a large number of suppliers and genuine choice throughout the supply chains. Low barriers to entry for new suppliers and little consequences if one fails.

The same isn’t true of the energy market and they’re all relying on the taxpayer to underwrite failure. Unlike a distillery making a diverse range of Vodka brands.
The barriers to entry for the energy have been set too low such that anyone can set up in business with a laughable number of failures pre the current energy market crisis. The net result is higher prices as energy customers have to pay a levy to sort out the admin when these companies fail.

I honestly don't think six is a bad number of companies to have in the market. And new entrants like Octopus and First Energy (acquired by Shell) have demonstrated that it is possible to succeed against the incumbents.
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