Four more UK energy providers collapse amid soaring gas prices

2 November 2021, 19:02 | Updated: 10 November 2021, 15:22

Four more energy providers have gone bust as soaring gas prices claim more British firms.

Omni Energy, MA Energy, Zebra Power and Ampoweruk have announced they will cease trading, the watchdog Ofgem said, affecting about 23,700 households and businesses.

They are the latest in a line of casualties, with Bluegreen Energy Services going under on Monday.

A total of 18 suppliers have collapsed in the past two months because of the gas price crisis.

Customers will be given a new energy provider by Ofgem, their energy supply will continue as normal and they will also be protected by the energy price cap.

Ofgem's director of retail, Neil Lawrence, said: "We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.

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"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.

"If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you.

"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."

The price surge has been blamed on a cold winter which depleted stocks, high demand for liquefied natural gas in Asia and reduced supplies from Russia.

Kwarteng: Price cap 'not going anywhere'

Boris Johnson has also blamed economies unlocking from the pandemic, comparing it to "everybody going back to put the kettle on at the end of a TV programme".

It has led to industry warnings over energy supply ahead of winter, with factories previously warning they could have to stop production because of rising costs.

It has been hoped the high prices will not be permanent.

Kwasi Kwarteng, the business secretary, said solar and wind power will start providing more energy to the UK's households and this will help with gas price changes.