Home U.K Prices to force 4 energy firms out of business this week

Prices to force 4 energy firms out of business this week


Utility Point and People’s Energy, which have more than 500,000 customers between them, stopped trading last Tuesday.

At least four suppliers have collapsed since August.

Prices surged 11-fold due to a squeeze in gas supply, low wind speeds and power station closures, as well as a fire in Kent which cut off power supplies from France. Business Secretary Kwasi Kwarteng tweeted: “Some energy companies are facing pressure.

“Ofgem has robust measures in place to ensure that customers do not need to worry, their needs are met, and their gas and electricity supply will continue uninterrupted if a supplier fails.”

Wholesale gas prices have risen 68 percent in the past five weeks, with costs up an estimated 324 percent on September 2020.

Data from Germany shows wholesale electricity prices have risen 66 percent, and are up 174 percent year on year.

At the beginning of 2021 there were 70 energy suppliers in the UK.

Sources in the industry say there may be as few as 10 left by the end of the year.

Industry rules mean supplies will continue for affected customers and they will not lose money owed to them.

The new company supplying the energy is also responsible for taking on any credit balances the customer may have.

But having to pay that credit out to customers is likely to put off companies taking on new business.

If the company is not taken over, there are processes in place to appoint a special administrator to temporarily run the suppliers.

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