Two MORE UK energy suppliers collapse as gas crisis deepens, over 1.5 million customers reportedly affected
A further two UK energy suppliers have collapsed amid the deepening gas crisis, leaving an additional 800,000 customers in limbo. Over 1.5 million people are now reportedly affected, with more firms expected to cease trading.
The companies, Avro Energy and Green Supplier Limited (often referred to simply as ‘Green’), have ceased trading amid the crisis, the Office of Gas and Electricity Markets (Ofgem) energy regulator announced on Wednesday. The watchdog insisted the customers of now-bust companies have nothing to worry about, promising a steady supply of energy to them in the wake of the news.
“If you’re a customer, please don’t worry – you can rely on your energy supply as normal. We will now switch you to a new supplier,” Ofgem stated.
The companies join several other small British energy suppliers that have gone bust over the past few days amid the ongoing natural gas prices hike. According to UK media estimates, the now-defunct companies served more than 1.5 million clients combined.
Also on rt.com State loans may be on the table for Britain’s energy companies as gas prices surge, but minister refuses bailouts for ‘failure’The CEO of Green, Peter McGirr, has been vocal about the government’s handling of the crisis and warning that smaller energy providers are unlikely to survive it without help from the authorities.
“Without support mechanisms from the government it is unlikely we’ll see the winter through,” he told BBC earlier this week.
News about the demise of Green has caused some confusion, as people mistakenly confused it with Green Energy UK Limited. The latter had to issue a statement, clarifying it was not going out of business.
“We are a wholly separate business to the ‘Green Supplier’ that ceased trading today,” the company tweeted, reassuring its customers that the business continues as usual.
Green Energy UK has itself been very critical of the government approach towards the energy sector as well. The company’s position, outlined by its CEO Doug Stewart on Monday, however, appeared to be the opposite to one expressed by the boss of its now-defunct namesake.
“The so-called ”safety net” has been a reward for such failure since it was introduced, despite many in the market calling for stiffer stress testing. For many years, GEUK called on Ofgem and the Government to have stronger stress tests for new entrants but these calls were ignored, until last year,” Stewart said in a statement.
“This unfortunate situation has been coming for a while; people shouldn’t be surprised. Simply, you can’t buy something for £10 and sell it for £8 and expect to stay in business for long.”
Also on rt.com UK energy regulator’s boss left in darkness as he tells Parliament lights will stay on in winter amid surging gas prices (VIDEO)The collapse on Wednesday of the two smaller companies came shortly after Ofgem boss Jonathan Brearley appeared before the Commons energy committee, seeking to reassure MPs over the crisis. The official said the UK has “one of the most secure and resilient” gas and electricity supply systems, while acknowledging, however, that more companies are indeed expected to go bust.
“It’s not unusual for suppliers to go out of the market. I think what is different this time is that dramatic change in the costs that those suppliers are facing,” Brearley told the committee.
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