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British energy suppliers Utility Point and People's Energy cease trading

By Reuters

LONDON – British energy suppliers Utility Point and People’s Energy have ceased trading, energy regulator Ofgem said on Tuesday.

The two companies have more than half a million domestic energy customers combined and the closures come after two smaller firms ceased trading earlier in September.

Any outstanding credit balances of Utility Point’s 220,000 domestic customers and People’s Energy 350,000 domestic customers will be protected and a new supplier found, Ofgem said.

Britain’s more than 50 small and mid-sized independent energy suppliers hold about a 30% share of the market.

However, soaring gas and power prices this year have meant that some smaller companies with less capital to hedge their positions could be vulnerable, analysts have warned.