It looks like yet more consolidation for the energy sector. It will be interesting to see who is left standing and what the impact will be on the consumer. A rush of new entrants had seemed to be changing the market and making it more competitive. There is now a danger that through the Supplier of Last Resort system we will return to just a handful of suppliers.
Whilst price caps may have appeared like a good idea at the time, the recent spike in wholesale gas prices shows that they can actually work in the opposite way to that intended. Shoosmiths and Cornwall Insight recently published a report on consolidation in the energy sector and the impact this could have. (The highlights from which are detailed here -Energy supplier consolidation to continue)
These are worrying times for the smaller energy companies and there are bound to be casualties.