Britain's energy crisis deepens as Orbit and Entice go bustNovember 26, 2021
Britain’s energy crisis deepens as Orbit and Entice become latest suppliers to go bust hitting 70,000 households as number of failed firms hits 25
- Entice Energy and Orbit Energy are both closing their doors as they go bust
- The firms’ closures bring the number of failed firms since the crisis began to 25
- Regulator Ofgem said it would ensure all customers find a new home
Britain’s energy crisis has deepened today as another 70,000 households see their energy suppliers go out of business.
Entice Energy, which had 5,400 households on its books, and Orbit Energy, which supplies 65,000 customers, are both closing their doors.
Regulator Ofgem said that it would ensure all the customers find a new home at a different energy supplier.
They can continue to use energy as normal and will be contacted by their new supplier in time. Their bills might change following the switch.
The companies join a club of two dozen to go out of business in less than three months, as companies were squeezed into failure by a spike in global gas prices. Another small supplier collapsed in August.
Regulator Ofgem said that it would ensure all the customers find a new home at a different energy supplier (file image)
In total around four million customers have been hit by the failures.
The biggest failure to date has been Bulb, once an energy success story which fell into administration on Wednesday.
While customers of the other 23 failed energy companies will be moved to a new supplier by Ofgem, Bulb simply had too many customers for this to be possible.
Instead it will continue to trade until it can be sold, or its customers slowly moved elsewhere.
Entice Energy, which had 5,400 households on its books, and Orbit Energy, which supplies 65,000 customers, are both closing their doors (file image)
The companies join a club of two dozen to go out of business in less than three months, as companies were squeezed into failure by a spike in global gas prices. Another small supplier collapsed in August (file image)
The Government has set aside £1.7 billion to support the company’s operations in the meanwhile, a burden which could find its way onto household energy bills.
After the failures of Orbit and Entice, Ofgem’s director of retail, Neil Lawrence, said: ‘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.’
Customers should take a meter reading now for when their new supplier gets in touch.
Gillian Cooper, head of energy policy at Citizens Advice, said: ‘The increases in global gas prices we’ve seen this year have been significant, but should not have led to the collapse of 25 firms.
‘As suppliers continue to fall like dominoes, it’s clear the market is not functioning as it should and there are serious questions for Ofgem to answer about how this has been allowed to happen.’
Household bills could soar by £60-a-year to pay for failure of energy supplier Bulb as government covers £1.7billion cost to keep lights on for its customers
Household bills could rise by as much as £60 to pay for the fallout of energy supplier Bulb as UK gas prices continue to skyrocket over winter.
The company was placed into administration Wednesday and the government has pledged to set aside £1.7billion to keep Bulb’s 1.6million customers warm over winter.
Bulb will be the first company to use the Special Administration Scheme – a contigency system that was designed to temporarily support energy suppliers deemed too big to fail.
Under the rules of of the scheme, Bulb will receive Government money to continue supplying gas and electricity to its customers during the administration period.
The system was devised in 2013, with the intention that the Government would later place the costs back on to the energy suppliers.
This in turn, means the price will be passed on to households through their energy bills.
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