A total of 86 energy supply licences have been revoked since last summer while not a single new licence has been granted, Ofgem has revealed. The shakeout follows the introduction of tougher rules for energy companies and the people who run them.
This liberal regime led to a flood of licences awarded to new suppliers, some were set up from residential addresses and few customers. There was also the collapse of small suppliers that could not afford to compete, many stretched themselves to offer best buy deals and found themselves unable to cover their costs. Such suppliers survived an average of 16 months after being among the top 10 cheapest deals.
