Europe

UK energy crisis implodes as FOUR more firms on brink of collapse – Ofgem in crisis talks

Energy crisis: Red Wall MPs could be ‘betrayed’ says Batchelor-Hunt

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Ofgem is said to be bracing itself for a fresh wave of supplier collapses this week as the wholesale price of gas remains at record highs. Sky News reported that at least four suppliers were in talks with Ofgem this today about entering its Supplier of Last Resort (SOLR) system.

Should it materialises the news would add several hundred thousand households to the toll of those impacted by soaring wholesale gas prices.

Industry sources said the decision of at least some of those four companies to cease trading could be announced as early as tomorrow.

They are thought to include Pure Planet, which Sky News revealed at the weekend had been left marooned by backer BP’s likely decision to terminate financial support to the company.

An executive at one of the UK’s biggest energy companies said they understood that the other suppliers that were about to enter the SOLR mechanism were significantly smaller than Pure Planet in terms of customer numbers.

A Pure Planet spokesman said at the weekend that it had 250,000 customers.

It is claimed that firms Ampower, Zebra Energy and Neon Reef are among those at risk of collapse.

The SOLR procedure was established in 2003 to ensure that when supplier failure occurs domestic customers are guaranteed continuity of supply.

It has been used prolifically recently after the price of wholesale gas skyrocketed – sending numerous smaller firms to the wall.

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Bigger suppliers, including Centrica’s British Gas, EDF Energy and Octopus Energy have stepped into the fray.

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