You are here: Home - Household Bills - News -

Ofgem chief says more energy firms could go bust

0
Written by:
22/09/2021
More energy suppliers could go out of business in the coming months, the chief executive of Ofgem has warned.

Speaking to MPs at a Business, Energy and Industrial Strategy Select Committee (BEIS) hearing, Jonathan Brearley said the change in the gas price was “not something we’ve seen before at this pace”.

“It is not unusual for suppliers to go out of the market. What’s different this time is the dramatic change in costs suppliers are facing,” he said.

“We do expect more [suppliers] not to be able to face the circumstances we are in, but it is genuinely hard to say more than that, partly because that means predicting what might happen to the gas price.

“We do expect a large number of customers to be affected. We’ve already seen hundreds of thousands of customers affected. It might go well above that.”

Soaring wholesale gas prices have led to the collapse of several small energy suppliers in recent weeks.

It was revealed this morning that two more firms – Igloo Energy and Green – are both in talks with insolvency advisers.

Green’s chief executive Peter McGirr told The Independent that the firm would not survive without government support – but the government said yesterday that it will not be bailing out failing energy firms.

Wholesale gas prices in the UK have tripled this year after the global economic recovery from the pandemic prompted a spike in demand.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week