It is due to the fact that a lot of these second-tier energy firms were selling fixed tariff contracts to their customers. This was fine when energy prices wer

It is due to the fact that a lot of these second-tier energy firms were selling fixed tariff contracts to their customers. This was fine when energy prices were low, but it left them exposed if the prices spiked. These new/small energy companies also did not have the resources to hedge their risk and are getting completely wiped out. The big players in the market were able to hedge their contracts and are not in danger. When a firm goes bust its customers get sent elsewhere and are forced to sign with one of the big energy companies, but will end up paying the max rate (capped, so it is not too extreme, but a lot of lower income people who switched to these small providers to lock in a good rate are now facing some unpleasant decisions as winter approaches...) [The various climate related bits add pennies to the bill and really have nothing to do with the problem, but it would not be a US biz infotainment show if it did not blame taxes or regulation in some way...]