More energy firms to go bust, regulator warns

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An unprecedented jump in gas prices will force more energy suppliers to leave “well above” out of business, limiting hundreds of thousands of customers, the head of energy regulator Offgame has warned.

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“Take a look at the change in the gas price – it’s really something we don’t think we’ve seen before at this pace,” Jonathan Brearley told lawmakers on the Business, Energy and Industrial Strategy Committee.

He declined to give an estimate of the number of firms that could close, but added: “We expect more [suppliers] We are not able to cope with the circumstances in which we are.”

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He said: “We expect a large number of customers to be affected, we have already seen hundreds of thousands of customers affected, which can go up significantly.

“It’s very hard for me to put a figure on this.”

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The warning comes amid a deepening crisis for UK energy suppliers, who have been hit by a 250 per cent jump in gas costs this year. Rapidly increasing demand as the world emerges from the pandemic, combined with a host of factors restricting supply.

An unusually cold winter left stocks low and a lack of wind meant Britain was more dependent on gas than in years past. Russia has provided less gas to Europe in a move that many believe is meant to exercise its power over EU countries blocking the opening of the long-awaited Nord Stream 2 pipeline. has been designed.

Britain is more dependent on gas than its European neighbors but ministers have allowed the closure of storage facilities in recent years.

Suppliers are not able to cover all the rising costs as many customers are on fixed rate deals that have not yet expired and the government is at the maximum level consumers can be charged for energy.

On Wednesday, Offgame ordered five suppliers to pay their bills for a government scheme that funds renewable energy.

The suppliers, Colorado Energy, Igloo Energy Supply Ltd., Neon Reef Ltd., Whoop Energy Ltd. and Symbio Energy, owe a total of £765,000.

“If suppliers fail to comply with an order made against them, Offgame may take further enforcement action and they may have their licenses revoked or face financial penalties,” Offgame said.

sky News informed of That the igloo is on the verge of collapse has called insolvency experts Alvarez and Marsal to review its options.

Customers of companies going out of business will be transferred to other suppliers along with any credits to their current provider. Although they may have to pay more for their energy.

The government has tried to play down fears that Britain’s energy supply is at risk and a blackout could happen this winter.

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Credit: www.independent.co.uk /

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