TWO more UK energy firms collapse –Ofgem statement
Nov 17, 2021 4:19:20 GMT
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Post by terminator on Nov 17, 2021 4:19:20 GMT
MORE THAN 35,000 people have been affected after two small energy suppliers went bust.
Neon Energy and Social Energy Supply both announced they have ceased trading as of Tuesday leaving 35,500 customers without any supplier. These two suppliers are the latest casualties of the ongoing energy crisis across the UK.
Neil Lawrence, director of retail at Ofgem, said they will sort new tariffs and protect their current credits where necessary.
He said: “Ofgem’s number one priority is to protect customers.
"We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.
“I want to reassure affected customers that they do not need to worry: under our safety net we’ll make sure your energy supplies continue
"If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you."
Earlier this month, four energy suppliers became the latest companies to go bust amid the soaring cost of wholesale gas prices.
Omni Energy Limited, MA Energy Limited, Zebra Power Limited, and Ampoweruk Ltd have all ceased trading, Ofgem said.
Together, they supplied around 23,700 customers
Since August, it is believed a total of 19 energy suppliers - mainly smaller firms - have gone bust, affecting around two million customers.
Mr Lawrence said at the time: "I want to reassure affected customers that they do not need to worry: under our safety net we'll make sure your energy supplies continue.
"If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you."
Last month, 1.7 million Britons were at risk as Bulb Energy faced collapse.
Ofgem said: "There has been an unprecedented increase in global gas prices which is putting financial pressure on suppliers.
"We know this is a worrying time for many people and our number one priority is protecting customers.
"In the event a supplier fails, Ofgem and government have robust processes in place to ensure customers' electricity and gas supply continue and domestic customers' credit balances are protected."
Three firms including Igloo Energy, Symbio Energy and Enstroga all went bust in September.
The largest firm to cease trading so far is Avro Energy, with its 580,000 customers passed onto Octopus Energy.
On Monday, Price Bailey, a top 30 accountant, found 14 electricity and gas suppliers are deemed “maximum risk” according to their credit score, meaning they could have difficulties accessing any emergency funding.
The firm checked the Delphi credit scores of all the household electricity and gas supply licence holders registered with energy watchdog Ofgem.
This excludes the so-called "Big Six" and two other firms whose credit scores were suppressed.
From the 29 companies that were focused on, 14 were deemed maximum risk, while 19 had above average credit risk scores.
Matt Howard, partner at Price Bailey, said: “The energy supply sector is facing complete carnage as we head into the winter months.
“Over a third of suppliers have already gone bust and another third are at imminent risk of going under in the coming months.”
This escalating crisis has resulted from a surge in the price of natural gas, which has jumped as much as six times in just over a year.
Neon Energy and Social Energy Supply both announced they have ceased trading as of Tuesday leaving 35,500 customers without any supplier. These two suppliers are the latest casualties of the ongoing energy crisis across the UK.
Neil Lawrence, director of retail at Ofgem, said they will sort new tariffs and protect their current credits where necessary.
He said: “Ofgem’s number one priority is to protect customers.
"We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.
“I want to reassure affected customers that they do not need to worry: under our safety net we’ll make sure your energy supplies continue
"If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you."
Earlier this month, four energy suppliers became the latest companies to go bust amid the soaring cost of wholesale gas prices.
Omni Energy Limited, MA Energy Limited, Zebra Power Limited, and Ampoweruk Ltd have all ceased trading, Ofgem said.
Together, they supplied around 23,700 customers
Since August, it is believed a total of 19 energy suppliers - mainly smaller firms - have gone bust, affecting around two million customers.
Mr Lawrence said at the time: "I want to reassure affected customers that they do not need to worry: under our safety net we'll make sure your energy supplies continue.
"If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you."
Last month, 1.7 million Britons were at risk as Bulb Energy faced collapse.
Ofgem said: "There has been an unprecedented increase in global gas prices which is putting financial pressure on suppliers.
"We know this is a worrying time for many people and our number one priority is protecting customers.
"In the event a supplier fails, Ofgem and government have robust processes in place to ensure customers' electricity and gas supply continue and domestic customers' credit balances are protected."
Three firms including Igloo Energy, Symbio Energy and Enstroga all went bust in September.
The largest firm to cease trading so far is Avro Energy, with its 580,000 customers passed onto Octopus Energy.
On Monday, Price Bailey, a top 30 accountant, found 14 electricity and gas suppliers are deemed “maximum risk” according to their credit score, meaning they could have difficulties accessing any emergency funding.
The firm checked the Delphi credit scores of all the household electricity and gas supply licence holders registered with energy watchdog Ofgem.
This excludes the so-called "Big Six" and two other firms whose credit scores were suppressed.
From the 29 companies that were focused on, 14 were deemed maximum risk, while 19 had above average credit risk scores.
Matt Howard, partner at Price Bailey, said: “The energy supply sector is facing complete carnage as we head into the winter months.
“Over a third of suppliers have already gone bust and another third are at imminent risk of going under in the coming months.”
This escalating crisis has resulted from a surge in the price of natural gas, which has jumped as much as six times in just over a year.
