Clydebank energy boss warns more firms will go bust this winter
Paul Richards from Together Energy says the next few months will be difficult.
Last updated 30th Sep 2021
The boss of Clydebank-based Together Energy is warning this winter will be difficult and dozens more gas and electricity firms could go bust as a result of soaring wholesale prices.
Paul Richards is chief executive for the firm which is one of the challengers to the so-called 'big six' suppliers and is telling Clyde 1: "The wind that we expect to blow in the UK over the summer months hasn't blown as heavily as it normally does.
"There has also been an unusual case in the demand for gas because it dropped during the first few months of the pandemic with many people working from home.
"Now they are coming back to work in factories like steel manufacturers which use a lot of gas so the demand for it is getting higher.
"However, the infrastructure is not there to provide it."
"Ironically a warm winter would help the situation"
Experts are concerned if we have an unusually cold winter it could exacerbate the situation and make it worse.
Paul added: "There are issues around climate change because a lot of customers don't understand why an electric plant require gas to power it.
"The simple answer to that is the wind isn't blowing and we didn't get enough sun.
"Ironically a warm winter will help this situation rather than hinder it.
"If we have an usually warm October that will help gas prices because it is all about when customers turn their boilers on."
"There could be just 10 or 11 energy suppliers left"
Thousands of customers have been calling the firm to ask if they are about to go bust because of rising gas prices.
He said: "I don't think there is much that can be done this winter that can stop unhedged or businesses with weak balance sheets going bust.
"There has been a lot of chat from industry analysts suggesting there could be just 10 or 11 energy suppliers left from a high of 70.
"I think that is the worst case scenario."