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UK energy regulator to unveil more supplier collapses - Sky News

UK energy regulator to unveil more supplier collapses - Sky News
UK energy regulator to unveil more supplier collapses - Sky News   -   Copyright  Thomson Reuters 2021
By Reuters

– British energy regulator Ofgem is expected to announce fresh supplier collapses as early as Wednesday, Sky News reported, after the watchdog warned last week that more companies could go bust with wholesale energy prices continuing to skyrocket.

Several British suppliers have ceased trading in the past few weeks as prices touched record highs and tariff caps hit smaller firms struggling to keep up with increasing costs.

At least four suppliers were in talks with Ofgem on Tuesday about entering the regulator’s Supplier of Last Resort system, where customers of a failed energy company are passed on to a rival, the Sky News report said, citing industry sources.

Ofgem declined to comment on the report.

Wholesale gas prices have soared in recent months as economies reopen from COVID-19 lockdowns and high demand for liquefied natural gas in Asia pushed down supplies to Europe.

Some 12 British energy suppliers have already collapsed this year, affecting more than 2 million customers. Struggling to cope with record gas prices, nine folded in September, including Enstroga, Igloo Energy and Symbio Energy.