Four more energy suppliers could collapse this week amid rising wholesale energy prices leaving thousands of homes facing higher bills, and according to Sky News, Ofgem could announce, after the watchdog warned last week that more companies are in danger of going bust.
Many British suppliers have stopped trading in the past few weeks as prices reached record highs and tariff caps hit smaller firms striving to keep up with growing prices.
The Sky News report said that at least four suppliers were in discussions with Ofgem on Tuesday about entering the regulator’s Supplier of Last Resort system, where customers of a failed energy company’s are passed onto a competitor.
Ofgem refused to comment on the report.
Wholesale gas prices have soared in recent months as economies reopen from COVID 19 lockdowns and the great demand for liquefied natural gas in Asia drove down supplies to Europe.
Some twelve British energy suppliers have now collapsed this year, affecting more than 2 million customers.
Fighting to cope with record gas prices, nine folded in September, including Enstroga, Igloo Energy and Symbio Energy.
Households attached to failed companies will be put into a rescue regime which will involve Ofgem hunting for a new supplier to take them on, and while there’s no chance that their gas or electricity supplies will be cut off, they will be shifted to tariffs which are expected to be about £400 a year higher.
Under the supplier of last resort system, outstanding credit balances owed to current and previous customers will be paid and households transferred will be protected by the energy price cap, but customers who were on the lower fixed price deals, signed before the gas price increase, were informed that bills could jump by hundreds of pounds.
So far 1.7 million homes have been abandoned by energy companies which have now collapsed and thousands more could be plunged into the same situation if four more companies fold this week.
Earlier this month, more than 230,000 households have been moved to E.on Next after the energy supplier picked up the pieces from three failed competitors in the sector.
Regulator Ofgem said it had appointed E.on Next to take on consumers who were once on the books of Enstroga, Igloo Energy and Symbio Energy.
Between them, the three companies had 233,000 customers.
They will all be changed over by E.on and can proceed to use their gas and electricity as before.
The thing is, whether these companies go bust is pointless because all gas and electricity bills are going to be more expensive, it won’t matter who you’re with.
It’s that pesky global reset thing again, where the peasants freeze to death, especially the elderly, whilst the elite lounge in warmth and comfort. Talk about going back to the dark ages again, but these elites should check their history because it really didn’t end so well, but it really will be a choice between eat or heat for many, and when energy companies amend your direct debit payments be prepared for a huge shock, and this is blatant profiteering.
And this great reset appears to be marketed by using the motto ‘Build Back Better’ and ‘Green Cheap Clean Energy’, but this so-called green energy is neither affordable nor clean and is neither reliable nor efficient.
And our incompetent Prime Minister is off on holiday, exercising his leisurely pursuits at a 25K a week villa, while the rest of us have a massive energy crisis hovering over our heads – Nero really does fiddle while Rome burns.