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Recent Energy suppliers that have ceased trading
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<blockquote data-quote="Exfarmer" data-source="post: 7767076" data-attributes="member: 1951"><p>Most of these new small energy companies, green or not, were relying on the fact that the day to day market was cheaper than purchasing from the futures market. </p><p>To sell their products they were quoting prices which gave them a very small margin, but if you sell a million units and make tenth of a penny each that is a thousand pounds profir. </p><p>They probably did fix some but when working on wafer thin margins there is the temptation to cut corners and rely on the day to day market , when it was cheaper. </p><p>I think in agriculture we have seen similar bankruptcies on the grain and especially in the potato trade which took many down.</p><p>The problem arose when the government allowed all and sundry to set up as gas and energy traders with no back ground in such a business. Some have done it to deleberately milk the conpany which sadly is all too common today. Others I suspect come from a background of trading on Ebay etc. and having an unrealistic belief in them selves</p><p>A couple of these companies were running out of peoples bedrooms <img class="smilie smilie--emoji" loading="lazy" alt="🙄" title="Face with rolling eyes :rolling_eyes:" src="https://cdn.jsdelivr.net/joypixels/assets/6.5/png/unicode/64/1f644.png" data-shortname=":rolling_eyes:" /></p></blockquote><p></p>
[QUOTE="Exfarmer, post: 7767076, member: 1951"] Most of these new small energy companies, green or not, were relying on the fact that the day to day market was cheaper than purchasing from the futures market. To sell their products they were quoting prices which gave them a very small margin, but if you sell a million units and make tenth of a penny each that is a thousand pounds profir. They probably did fix some but when working on wafer thin margins there is the temptation to cut corners and rely on the day to day market , when it was cheaper. I think in agriculture we have seen similar bankruptcies on the grain and especially in the potato trade which took many down. The problem arose when the government allowed all and sundry to set up as gas and energy traders with no back ground in such a business. Some have done it to deleberately milk the conpany which sadly is all too common today. Others I suspect come from a background of trading on Ebay etc. and having an unrealistic belief in them selves A couple of these companies were running out of peoples bedrooms 🙄 [/QUOTE]
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