Consolidation continues in UK Energy Retail
Updated: Dec 15, 2020
While forward power prices are currently low, this doesn’t mean the market is an attractive place to be right now. A combination of Mark-to-Market and low cash inflows following a mild winter are putting pressure on suppliers operating cash.
Customer acquisition remains challenging with many suppliers forced to acquire on negative gross margins.
Suppliers are likely to be further impacted by Ofgem licencing reforms, with business models reliant on low prices and advance payments notably impacted.
We see the trend of consolidation continuing, impacted by cash flows in both wholesale and retail environments, with Accelerated M&A capability becoming ever more vital.
BFY will be hosting a series of events and webinars to provide further insights and support. Please contact Ben Bugg or me for further information.