REFORMS to the energy sector risk reverting the market back to only a few big suppliers, which would not be in the interests of customers, warned Yu Group boss Bobby Kalar.

The chief executive of one of the fastest growing business suppliers - offering gas, electricity and water - told City A.M. he did not want to see the UK's energy market dominated by a "cartel of seven or eight huge suppliers who do nothing but churn customers from one supplier to another".

Kalar argued this would create "misery" and "distrust" from energy users towards the industry.

In his view there had to be a balance between fixing the market and ensuring disruptors and challengers could thrive to offer new innovations for customers and to keep prices competitive.

He said: "If we have too much regulation, you're going to kill creativity, and if we have no regulation, there's going to be anarchy. I think there needs to be a blended mix. I think it needs to sit somewhere in between the two. But I certainly don't think over-regulation is the answer to our problems. I definitely don't think that's the case."

The energy market has been hammered by historic volatility over the past year, with 30 suppliers collapsing from the combination of soaring wholesale costs and insufficient hedging strategies.

(c) 2022 City A.M., source Newspaper