Specialists on standby
Ofgem prepares for failure of big energy firm
Concern is mounting over gas company failures
Energy regulator Ofgem has hired a firm of insolvency specialists to act as special administrator in case a leading supplier needs to be rescued.
The watchdog has put advisers at Teneo on standby following the collapse of nine energy suppliers serving more than 1.7 million households in the past month.
There is concern, according to Sky News, that the customers of one of the big energy companies could not be passed on to a rival through the regulator’s Supplier of Last Resort (SOLR) system.
Supply concerns have mounted following the collapse of Igloo Energy, Symbio Energy and Enstroga on Wednesday.
The price of natural gas has risen to another high. European natural gas and power prices also hit fresh records. Cold weather warnings have raised concerns further.
Octopus Energy and Shell Energy Retail were last week handed the customers of Avro Energy and Green Supplier respectively following their collapses, bringing the total to 12.
Ofgem appointed British Gas to supply the 350,000 household and 1,000 business customers of the Edinburgh-based firm People’s Energy.