Since January 2021 gas wholesale prices have surged by 250%, causing a few energy suppliers to go bust. Since August alone gas and oil prices have risen by 70%. So far 9 small energy companies such as Avro have ceased to trade this year alone. Due to this UK energy crisis more than a million households will be affected by increased gas and electricity bills this winter. It also doesn’t help that Ofgem is increasing the energy price cap from 1st October. Therefore it’s best to Act now to avoid an energy price hike of at least £140.
My reaction to my energy supplier going bust
I know it can be very scary when your gas & electric supplier stops trading. My supplier Avro Energy, ceased to trade on 22nd September. I was panicking about the credit I’ve accumulated on my Avro account to cover my winter bills. I’ve accumulated over £300 in credit, thinking this winter I won’t have to worry about my heating costs. Since it has been advised to fix the price before 1st October when the new energy price cap will come in force. I’ve renewed my contract with Avro to fix my price on 9th September, which they where happy for me to do. The thing that I’m not too happy about is that they clearly knew then that they would stop trading soon after. However they were still happy to let me and many other customers renew their contract to fix our rates before the price hike in October.
What happens to electricity and gas supply when my energy supplier goes bust?
After reading Ofgem’s advice, I felt a lot better knowing that our credit will be protected and that our gas and electricity supply will not suddenly stop. The only down side is that we might be put on a more expensive energy tariff. Thought the increased energy prices can’t be avoided, there are may ways to save money on our gas and electricity bill this winter.
What happens my credit or debt?
Ofgem will protect your balance. If you have built up credit on your energy account, your credit will be transferred to your account with the new supplier. If you can try to log into your energy firm’s account and take a screenshot of your balance and bill. This way you will have a record of your balance should.
Ways to help you save money on your energy bills this year
Which energy supplier has gone bust this year?
So far these are the energy suppliers that have stopped trading. However it has been predicted that more small energy companies may cease trading.
Green Network Energy – 27th January – customers have been transferred to EDF
Simplicity Energy – 27th January – customers have been transferred to British Gas Evolve
Hub Energy – 9th August- customers have been transferred to E.ON Next
PFP Energy -7th September- customers have been transferred to British Gas
MoneyPlus Energy -7th September- customers have been transferred to British Gas
People’s Energy -14th Sepetmber – customers have been transferred to British Gas
Utility Point – 14th Sepetmber – customers have been transferred to EDF
Green Supplier Limited -22nd September – customers have been transferred to Shell Energy
Avro Energy – 22nd September – customers have been transferred to Octopus Energy
Which energy companies are at risk of going bust?
The Financial Times reported, the UK’s 6th largest energy firm Bulb is trying to secure emergency funding. The medium sized gas and electricity supplier Igloo Energy is also on the brink of collapse according to a report by Sky News.