Two more energy firms power down as taxpayer keeps lights on at Bulb | Business News

Must read

Apple digital-ID scheme delayed to 2022

The delay follows Apple announcing it wanted "sole control" over how US states rolled out the feature. Credit: Source link

US restricts trade with a dozen more Chinese technology firms

The move comes as tensions grow between the US and China over the status of Taiwan and trade issues. Credit: Source link

737 Max: Boeing refutes new safety concerns

Critics claim publicly available data shows worrying failures on the 737 Max since its return to service. Credit: Source link

Covid: Face masks rules return in England amid Omicron spread

Coverings become mandatory in shops and on public transport under measures to slow Omicron's spread. Credit: Source link
This is an online news portal that aims to share latest news about these topics "news, business, health, sports, technology " and much more stuff like that. Feel free to get in touch with us!

The demise of two more household energy suppliers has been confirmed by the industry regulator, less than 24 hours after the taxpayer was left liable for major player Bulb and its 1.7 million customers.

Ofgem revealed on Thursday afternoon that Entice Energy, which comprises both Entice Energy Supply Limited and Simply Your Energy Limited, and Orbit Energy Limited had ceased trading.

They had 5,400 and 65,000 customers respectively.

Unlike with Bulb, but in common with the previous collapse of 22 firms since September, customers will be appointed a new supplier under the regulator’s “safety net”.

Almost four million households have been affected by the raft of energy firm failures this year.

It has been caused by a COVID-related squeeze in gas supplies that has ramped up prices to record levels as companies and countries scramble to secure enough for the winter.

Bulb, which had 1.7 million customers, was deemed too big to fail because imposing such a flood of business on one provider was financially impossible.

It is now being run by a special administrator, Teneo, with up to £1.7bn of Treasury funding – £1,000 for each customer – to ensure continuity of supply pending a sale of the business.

The process is expected to take some time, especially given the fact that prices remain well above levels usual for the time of year.

A restructuring or sale of Bulb’s customer base would take place in the event no buyer can be found.

Please use Chrome browser for a more accessible video player

Bulb goes into administration

Neil Lawrence, Director of Retail at Ofgem, said of the two latest failures: ”Ofgem’s number one priority is to protect customers.

“We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.  

“I want to reassure affected customers that they do not need to worry. Under our safety net we’ll make sure your energy supplies continue. 

“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your tariff.”

That tariff will be on the government’s energy price cap as there are no cheaper fixed rate deals on the market.

The cap rose 12% at the start of October to reflect wholesale price increases ahead of last summer.

It is expected to rise again in April, following a review in February, to reflect further increases.

Economists have warned it could add hundreds more to annual bills.

Credit: Source link

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

Storm Arwen: Hundreds of starfish washed up on beach

The creatures along with clams and crabs covered a 100m stretch of Culbin Sands. Credit: Source link

Inditex: Zara founder’s daughter becomes fashion giant's chair

Marta Ortega has been with the firm for 15 years, starting out as an assistant at its High Street brand Bershka Credit: Source link

Procurement AI start-up DeepStream raises £5m to tackle supply chain headaches | Business News

A British artificial intelligence (AI) start-up which helps companies make complex supply...

MI6 chief warns on ‘assertive’ China

The head of the Secret Intelligence Service (SIS) has warned of China’s increasingly “assertive” stance in global affairs, and use of “debt traps and...

Covid: Face masks rules return in England amid Omicron spread

Coverings become mandatory in shops and on public transport under measures to slow Omicron's spread. Credit: Source link