Two more UK energy retailers cease trading
Two more British energy retailers, Avro Energy and Green Supplier, have ceased trading, regulator Ofgem said September 22. Between them they had a little over 800,000 domestic customers and a small number of non-domestic customers, or 3% of the sector.
Ofgem now is deciding which retailer will take over the customers. So far, UK Centrica has had most of the failed suppliers' businesses, while EDF Trading picked up Utility Point's accounts. Whoever is picked will be able to pass the costs of sourcing the energy to the rest of the market.
Ofgem said it was working closely with government and industry to make sure customers continue to be protected this winter.
Earlier this week Ofgem issued a joint statement with Department of Business, Energy and Industrial Strategy (BEIS) in which they said that the UK benefits from having a diverse range of gas supply sources with capacity that can more than meet demand. But it did not say at what price this energy would be secured.
There have been suggestions that the non-competitive elements of a domestic bill, such as green levies, should become part of general taxation, which taxes the wealthier more.
Ofgem and BEIS also said that “in the coming days, we will also meet with smaller and challenger energy suppliers and set out the next steps for protecting consumers, businesses and energy suppliers from these global prices rises. Central to any next steps is our clear and agreed position that the energy price cap will remain in place.”