The chief executive of the company that owns British Gas has warned that another energy company could collapse this winter, potentially pushing energy bills even higher. Chris O’Shea, chief executive of Centrica, said another company could follow the string of collapses that have already help drive gas and electricity bills to record levels.
He said: “Every day they lose money, they become riskier and the more likely we’ll see the failure of a major energy supplier.”
Around 30 suppliers have already collapsed, and the cost of that is passed on to customers in higher bills. The failures added £94 to every household’s bill, reports The Mirror.
Mr O’Shea said: “The poorest in society pay £94 and the richest in society pay the same £94. It’s an outrage.”
The figure does not include the collapse of Bulb, which was rescued by taxpayers at an estimated cost of £6.5billion. Mr O’Shea added: “If the reported numbers for Bulb are right, it would be the best part of £250 per household.”
In February this year, Mr O'Shea waived his £1.1m annual bonus, saying it "didn't feel right" as customers' bills were soaring. He picked up a £775,000 a year salary.
Mr O'Shea criticised a delay in requiring suppliers to build up capital to safeguard against a possible collapse. The Government has announced £150billion worth of help to limit energy bill hikes for millions of households this winter.
Britain currently has just nine days of gas stored - the lowest in Europe.
Germany has 89 days, France 103 and the Netherlands 123.
Half of the UK's energy is powered by gas.
