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The Collapse of GB Energy

Graham Watson

29th November 2016

The collapse of GB Energy could lead to similar closures of other small energy suppliers.

The reason that GB Energy gave for its demise was that it was unable to forward buy energy to the same extent as the bigger suppliers and thus unable to cope with the rising price of energy and the low-tariff deals it offered its customers.

Lots to ponder - not least the cost implications of rising energy prices for small independent suppliers, the existence of financial economies of scale for larger companies and the effect on the market of fewer firms in the sector.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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