Two more energy companies went bankrupt yesterday, hitting nearly a million customers.
And these recent collapses have raised fears that millions could soon remain faced. Huge billing amount increased..
Avro, which supplies 580,000 people, was the biggest failure, and Green, which has 255,000 books, ran out of money to buy gas in the face of rising prices.
This shows that 1 in 20 households have failed suppliers in the last two weeks.
And there is a real fear that another 4 million customers could go bankrupt next month.
No one sees their gas or electricity cut off, but they face Huge invoice goes up..
The bigger concern is that the industry’s cost of moving customers to a new company is rising, already over £ 1 billion.
Executive Secretary Kwasi Kwaten told the energy industry that he needed to “find a solution first” rather than reaching out to the minister for bailouts.
The energy boss warned that the cost would be passed on to all customers as part of the taxation from the regulator Ofgem — and that could be as much as £ 100 per invoice.
This will be done in addition to the possibility of raising the price cap next spring.
Supplier wants a government-backed loan as a condition to undertake what could ultimately be 5 million deficit customers.
Emma Pinchbeck, CEO of Energy UK, which represents most utilities, said suppliers are facing a cost of £ 600 per customer inherited from a failed company.
In the last two weeks, Ofgem needs to find a rival energy company that is willing to accept Avro and Green customers, in addition to the other four failed companies.
In addition to PfP, MoneyPlus, Utility Point and People’s Energy, Avro and Green have approximately 1.5 million customers.
“Their gambling backfired.”
The company didn’t go up at the price bet and initially saved billions of pounds by not pre-purchasing gas.
A source from a large company said:
“Now we are being asked to take on their customers and we simply have to go to the market to buy gas at a spectacular price.”
Ministers have devised plans to lend billions of pounds to energy companies to seduce new customers.
One insider pointed out that energy companies that surge in new customers will make “big profits” when costs fall again.
Wholesale gas prices have risen 70% in a month and 250% since January.
Two more energy companies went bankrupt due to the gas crisis, hitting one million customers
SourceTwo more energy companies went bankrupt due to the gas crisis, hitting one million customers