Three more energy suppliers collapse amid soaring gas prices

29 September 2021, 15:14 | Updated: 29 September 2021, 16:00

Energy suppliers Enstroga, Igloo Energy and Symbio Energy have become the latest companies to cease trading amid rising gas prices.

Ofgem said the three suppliers have announced that they are ceasing to trade, following in the footsteps of Avro and Green - which had over 830,000 customers between them.

According to Ofgem, Enstroga supplies gas and electricity to around 6,000 domestic customers, while Igloo Energy supplies around 179,000.

Symbio Energy has around 48,000 domestic customers and a small number of non-domestic customers, it said.

Together the suppliers represent less than 1% of domestic customers in the market.

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Customers of the affected firms are being advised to wait until they are contacted by their new supplier, which will be chosen by Ofgem.

In the meantime, customers should take a meter reading so they are ready for when their new supplier contacts them.

Ofgem has also advised customers to wait until they are contacted before looking to switch to another energy supplier.

The three firms are the latest to collapse in recent weeks amid an unprecedented increase in global gas prices, which have risen by 250% since January, and 70% in August alone, according to OGUK, which represents offshore oil and gas companies.

This means that nine small UK energy suppliers have gone bust since the start of September.

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It comes after failures by People's Energy, Green Supplier Ltd, Utility Point, PfP Energy, MoneyPlus Energy, and Avro Energy.

Blame has been attributed to a cold winter which depleted stocks, high demand for liquefied natural gas in Asia and reduced supplies from Russia.

Ofgem said it was working closely with the government and industry to make sure customers continued to be protected this winter.

Neil Lawrence, director of retail at Ofgem, said its 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," he said.

“I want to reassure customers of Enstroga, Igloo Energy and Symbio Energy that they do not need to worry. Under our safety net we’ll make sure your energy supplies continue."

He reassured customers who have credit on their Enstroga, Igloo Energy or Symbio Energy accounts that the funds they have paid in are protected and will not be lost.