Oct. 12 (Reuters) – UK energy regulator Ofgem is expected to announce further supplier shutdowns as early as Wednesday, Sky News reported, after the watchdog warned last week that more companies could go bankrupt, wholesale energy prices continue to skyrocket.
Several UK suppliers have gone out of business in recent weeks as prices hit record highs and price caps hit small businesses struggling to keep up with rising costs. Read more
At least four suppliers were in talks with Ofgem on Tuesday to enter the regulator’s supplier of last resort system, where customers of a bankrupt energy company are transferred to a rival, according to the Sky News report, citing sources in the sector.
Ofgem declined to comment on the report.
Wholesale gas prices have skyrocketed in recent months as economies reopen after COVID-19 lockdowns and strong demand for liquefied natural gas in Asia has driven supplies to Europe.
Some 12 UK energy providers have already collapsed this year, affecting more than 2 million customers. Struggling to cope with record gas prices, nine fell in September, including Enstroga, Igloo Energy and Symbio Energy. Read more
Report by Pushkala Aripaka in Bangalore; Editing by Devika Syamnath
Our Standards: Thomson Reuters Trust Principles.