The head of one of Britain’s biggest utilities has urged UK ministers to urgently review the energy price cap, warning that persistently high wholesale gas prices could trigger an “absolute massacre” in the retail market that could claim another 20 suppliers.
ScottishPower chief executive Keith Anderson said even well run energy providers now face running out of cash. “There is a significant risk you could see the market shrink all the way back to five to six companies,” Anderson told the Financial Times.
The comments come as the retail energy market reels from a crisis that has led 14 British energy suppliers to collapse since the start of August, as low natural gas supplies push wholesale prices to a level five times higher than a year ago.