Energy Suppliers Starting To Collapse

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by Capitalist Exploits
Friday, Dec 17, 2021 - 17:04

Two companies just went bust. So who are they? They’re both energy suppliers in the murky land of the UK, and not the first. Oh, no!

Entice and Orbit become latest energy firms to go bust

“Since the beginning of September, a total of 24 energy suppliers have now failed following a spike in gas prices."

“As suppliers continue to fall like dominoes, it’s clear the market is not functioning as it should and there are serious questions for Ofgem to answer about how this has been allowed to happen,” said Gillian Cooper, head of energy policy at Citizens Advice.”

Here’s how it works

You run a business where you bring in customers by offering them incentives. One of those is cheap prices while locking them in for duration. Now, unless you’ve put in a forward rate contract securing the gas, you are open to whatever the market gives you. In normal times this is manageable. But these are not normal times, are they?

So we see more supply destruction and with that will come ever higher prices. That will be met with more monetary and fiscal spending, and no matter how much they try to reduce demand by locking people in their homes, the very act of doing so reduces supply even further, causing them to print even more money. The result? Absolute chaos, food shortages, power outages, bankruptcies, civil unrest, eventually international war, and an inflationary nightmare.

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