London-based business power retailer MA Energy has reportedly defaulted out of Elexon’s Balancing & Settlement Code, meaning it cannot take on further customers.
Elexon’s removal of the twelve-year old supplier from the BSC prevents the retailer from registering new metering systems as well as further units in the Balancing Mechanism.
The exchange took the step after Canary Wharf-based MA Energy failed adequately to reduce its credit cover percentage.
Exclusion from the BSC is a strong precursor to cessation of trading. Seven licenced suppliers have been shown the code’s door in 2021, including Enstroga and Igloo this month. All seven have now closed.
The cull in Britain of new energy entrants and under-hedged minnows is among the most visible fruits of the global crisis around gas supply.
Wholesale prices in European bourses have rocketed by over 250% in 2021, with Russia’s Vladimir Putin being forced last week to deny rumours the country was manipulating supplies to Europe for geopolitical advantage, as he seeks the continent’s accreditation of Nord Stream 2. The pipeline’s Baltic Sea route avoids Russia’s adversary Ukraine.
National Grid has warned of tightening margins for UK generation. At least one supplier has gone on record about its likely collapse before Christmas.
