New Electricty Companies can’t Cope with Price Rises
February 6, 2006 at 5:32 pm
Zest4 Electricity, Utility Link, Eledor, Reepham and the Team Group of Companies have had to pull out of the electricity market as they cannot afford wholesale gas prices (also used to power electricty stations) which continue to rise.
After setting fixed prices to their customers and then being faced with soaring wholesale prices the companies collapsed. Their customers who were expecting guaranteed lower bills will now be facing energy bill increases as Ofgem’s policy automatically switches them over to a new supplier – usually one of the six major suppliers.
Although customers are free to switch their supplier at any time, they have no choice with this initial decision of which company they are switched to and it seems that no automatic compensation is available.
