Energy boss believes 20 more suppliers face bankruptcy over ‘£5billion’ price cap bill.

The chief executive at Scottish Power claims that the current market is unsustainable and could bring about the return to the days of only the ‘big 5/6’ suppliers and their monopoly of the market.

There has been demand from suppliers for urgent changes to the price cap, which was brought into play to shield consumers from large price increases. Their argument is that the price cap now needs to be reflective of the cost for suppliers buying energy from the wholesale market.

The rise in wholesale gas costs, in particular, has proved unaffordable for a lot of suppliers with less financial capacity as they are currently having to provide gas to any consumer on the price cap at a loss to what they purchase it for.

As more customers fall out of contract and roll onto the cap-regulated tariff, we will see more and more suppliers go bust. Creating a monopoly for the ‘big 5’.