Two More U.K. Energy Suppliers Collapse in Avalanche of Failures
Two More U.K. Energy Suppliers Collapse in Avalanche of Failures
(Bloomberg) -- Two more energy suppliers in the U.K. have failed, taking the total to 23 companies that have collapsed since the start of August in the biggest shake out of the country’s retail power and gas market.
Entice Energy, with 5,400 customers, and Orbit Energy, which served 65,000 households, announced they are ceasing to trade, according to regulator Ofgem. The watchdog will help find a new firm to take over the accounts.
The U.K. energy market is in chaos. The government insists that the tools they have are working to manage the disruption caused by so many bankruptcies. But the number of companies is mounting and some industry bosses are saying they expect just a handful of suppliers to be left by April.
The insolvency of Bulb Energy Ltd. earlier this week was the largest so far with 1.7 million customers. A special administrator was appointed by a judge yesterday in the first of its kind in the energy sector.
The U.K. government will make 1.7 billion pounds ($2.3 billion) available to help cover the costs of running Bulb, the country’s seventh-largest supplier, in the first forced nationalization since the 2008 banking crisis. This cost will then be claimed back via consumer bills on top of about 2 billion pounds already on the tab from previous company failures.
U.K. Business Secretary Kwasi Kwarteng told Parliament yesterday that the retail market was an area that needed a close look.
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