You’d be forgiven for thinking the collapse of Enron and its aftermath marked the lowest point for the energy sector. But you’ll have to think again, particularly with regard to the UK and US markets. In both countries, energy utility companies are running into severe financial difficulties, finding themselves unable to service debt and causing a big headache for the banks and bondholders that financed their expansion in the early to mid-1990s.

There are many reasons for this. The collapse in