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Why wouldn't they hold the risk? They know what level the energy price cap is set at, so it is there job to hedge the risk that they can secure the supply below that level which many have failed to do. In Bulb's case, there business model is loss making to grow market share so they had no wiggle room to begin with.
It is the fault of the regulator that they allowed companies to take on positions with considerable risk without requirements around exposure levels
greentricky-
Bulb would have been ok with only offering svt as the price cap takes into account a small margin for suppliers. Under normal market conditions they could have weathered the storm of slightly increased costs with their hedge and waited for the next price cap announcement, but with such a rapid increase in costs that’s what’s put them at risk.
C4r1s
Why are they collapsing? Is it a regulator fail?
High wholesale prices I get but why are the commercial providers the ones allowed to hold the exposure to that, I'd assumed (presumably wrongly) it's their business to ship the stuff to consumers rather than to hold risk positions.