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Re: Energy companies collapse
Good article recently in the Times about Octopus
https://www.thetimes.co.uk/article/o...bets-sgk7zj3st
Quote:
Jackson, 50, says he has been shocked at how some companies were placing “one-way bets in the market” by taking on customers and only buying the energy needed to supply them later on — in other words, not hedging by purchasing energy in advance at an agreed price. That is fine when prices are flat or falling, but fatal when they soar — as they have done. “The cause of the companies going under isn’t the price cap — it’s the fact they didn’t hedge their energy costs,” he says.
He wants the regulator to introduce stress tests to ensure companies have hedged appropriately. “It’s not onerous or intrusive to do that. It’s important to make sure irresponsible or naive behaviour from companies doesn’t lead to the kind of cost of failure we’re seeing.”…
… Octopus Energy has quickly grown into a giant. Last year it secured the backing of Tokyo Gas, allowing it to launch in Japan, and of Origin Energy in Australia. It now has offices in central London, Brighton and Leicester.
Jackson won’t comment on his interest in buying Bulb, which is seeking more cash, but the latest injection from Al Gore’s Generation fund values Octopus at £3.3 billion — the same as Centrica.
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