UK energy supplier Bulb has been placed under special administration, making it the biggest company so far as a result of rising gas prices and killing 1.7m customers.
The credit balance of the customers will be protected, Bulb said in a statement, urging its customers not to worry.
The bulb’s parent company, Simple Energy, will also enter administration, but its international businesses in France, Spain and the US will continue to do business.
Energy prices have risen dramatically this year due to a number of factors, such as rising demand as the world recovers from the COVID-19 pandemic and an unusually cold winter that left stocks low.
Firms have also complained that the UK price cap on energy bills means they have not been able to pass the price increase on to customers, forcing companies to incur costs.
Back in September, Ofgem chief executive Jonathan Brearley warned that he expected a “large number of customers” to be affected by the crisis, which has already caused many energy suppliers to go out of business before the bulb.
“It is not unusual for suppliers to go out of the market. I think what’s different this time around is that those suppliers are facing a dramatic change in costs,” said Mr. Brearley.
“We expect more [suppliers] Not to be able to cope with the conditions we’re in, but it’s really hard to say more than that, partly because it means predicting what might happen to the price of gas. ,
What should I do if my energy supplier goes out of business?
The good news is that you will still have gas and electricity even if your energy supplier shuts down, as the UK gas and electricity regulator will switch you to a new supplier.
This will usually take a few weeks but your energy supply will not be interrupted during that time.
Then you just have to wait to contact your new supplier, as they will explain what is happening with your account.
Ofgem says it will decide who your new supplier is, after a bidding process from suppliers to get the “best possible deal” for customers on its website and social media is announced.
While this process is underway, customers are advised to check their current balance, download a bill (if possible) and take a photo of their meter reading.
Which companies have been busted so far?
The bulb outage meant that around 3.7 million customers were affected by the energy crisis, after Avro Energy and Green Suppliers Ltd went out of business.
Those companies joined People Energy, Utility Point, PFP Energy and MoneyPlus Energy to leave the market this year.
Collectively, those companies accounted for more than 5 percent of the market, or about 1.5 million customers, a situation now exacerbated by the loss of the bulb.
Commenting on the collapse, Offgame Director of Retail Neil Lawrence said: “I want to reassure customers of Avro Energy and Green Suppliers Ltd that they need not worry.
“As part of our safety net, we will ensure that your energy supply continues. If you have credit in your Avro Energy or Green Suppliers Ltd. account, it is safe and you will not lose the money owed.”
Asked about the bulb’s difficulties, Prime Minister Boris Johnson’s official spokesman said Offgame was “carefully” monitoring the impact of higher energy prices.
“We have put in place strengths and robust processes to ensure that there is no disruption to the energy supply to customers, and costs are reduced if a supplier exits the market,” he said.
“As the public would expect, we have looked at the system, given some of the challenges and speculation that has been reported about the impact it will have on even larger suppliers.”
PA. Additional reporting by
Credit: www.independent.co.uk /