Following GBEnergy collapse, Utility-Bill Shrinkers well placed in energy sector

 Following GBEnergy collapse, Utility-Bill Shrinkers well placed in energy sector
Telecom Plus has a 20-year power supply deal, which will protect it from the worst of any wholesale cost increases.  Following GBEnergy collapse, Utility-Bill Shrinkers well placed in energy sector

GB Energy, the utility company, ceased trading late last month and  Co-op Energy swiftly took on its 160,000 customers, another potential beneficiary of any shake-out in the market is Telecom Plus.

 Following GBEnergy collapse, Utility-Bill Shrinkers well placed in energy sector

It has a 20-year power supply deal with Npower, which will protect it from the worst of any wholesale cost increases.

This, in turn, could give Telecom Plus scope to win market share. By being in a position to undercut the big firms, such as SSE and Centrica. Also by winning back custom from recent entrants to the market. The business model of these recent suppliers in the market will come under ever-greater pressure the higher energy prices go.

 Following GBEnergy collapse, Utility-Bill Shrinkers well placed in energy sector

 Following GBEnergy collapse, Utility-Bill Shrinkers well placed in energy sector

It is has faced difficulties over the past three years. Telecom Plus has still generated plenty of free cashflow and consistently grown its dividend. A 4.2pc prospective yield is an additional attraction and a further potential source of support.

The increasingly fragmented energy market will no doubt shed more of the smaller suppliers, leaving TelecomPlus well-placed. 

 
 
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Following GBEnergy collapse, Utility-Bill Shrinkers well placed in energy sector
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One thought on “Following GBEnergy collapse, Utility-Bill Shrinkers well placed in energy sector

  • April 5, 2017 at 4:49 pm
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    That’s an expert answer to an intnrestieg question

    Reply

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