UK Crisis: Shades of ERCOT
October 04, 2021
Bloomberg reports that ten gas and power suppliers in the UK have folded in the face of Europe’s current energy crisis. Gas and power prices have spiked to record levels. Natural gas inventory is low. Winter is yet to begin. The shakeout has forced 1.7 million residential customers to switch suppliers, putting pressure on market giants including British Gas and Shell Energy. The situation mirrors the ERCOT crisis from February which saw more than twelve suppliers total nearly $3 billion in invoice defaults.