SEPTEMBER 25, 2021
By Paul Homewood
One of the delicious ironies of the current energy crisis has been the collapse of some of the small green energy companies that have sprung up in the last few years.
I say irony, because it is the very same green policies, which they espoused and hoped to make money out of, that have directly led to this crisis and their demise.
Some of them, such as a company known as “Green.” have been lashing out right, left and centre, blaming their problems on government, the weather, Brexit and goodness knows what else.
The reality is that most, if not all, of them have been poorly run and under capitalised from the start.
Green. , registered as Green Supplier Ltd, is one such tinpot company. Even last year, before the crisis started, their Accounts show they were to all intents and purposes broke:
Hardly surprising then that they could not manage their way through the crisis now. Most of these new entrants have tried to enter the industry on the cheap, hoping to undercut the big companies and make a fast buck.
In Green.’s case, share capital was just £10, and they appear to have relied on upfront customer payments for their cash flow. (Normally, when you sign up as a new customer, the energy company takes your direct debit straightaway, so you are always paying a month in advance.)
The whole business model of these sort of companies has been a scam from the start, pretending to supply renewable electricity to gullible consumers. But when the wind does not blow and the sun does not shine, they have to buy power from other sources.
If they were only buying wind and solar power, of course, they would not be exposed to gas price rises!
But their scam has been even worse. Wind and solar power have for years cost much more than conventional electricity, but the subsidies paid out for it have been added onto everybody’s bills. If customers of these green energy suppliers had to pay the full cost of wind and solar, they would quickly take their business elsewhere.
Yet, for some strange reason, the likes of Green. think taxpayers should be bailing them out!