It sounds like the smaller companies haven't been hedging their supply costs. Which should be a regulation really.

I mean, if you've customers on fixed price contracts for 12 months, or you know the maximum price you can charge on a variable contract for 12 months under government rules, you should be hedging that supply cost.

But I suppose that impacts on the profit margin. And if another company isn't doing it then they can charge less and take your market share and then you've no economies of scale.

Cheaper to hope it doesn't happen. And then let the limited liability of the company protect you if it does.

It's a right pain for all those customers with these companies. They're typically low price operators so people will have good deals.

But when you get moved across to one of the big 6, you'll be put on the standard pricing deal, which right now will be the maximum price. It could be quite a shock.