"Free-Market Solutions"! 12 UK Energy Companies Failed So Far In 2021 W. Higher Costs For Customers
Households are facing desperate choices this winter, with energy bills rising by £30 a month for those who have had to switch supplier owing to a wave of energy company failures, as three more collapsed on Wednesday. Rising gas prices have driven 12 energy companies under this year, forcing the regulator, Ofgem, to transfer 2m customer accounts to surviving suppliers. The collapse of a further three will force the regulator to move 233,000 more customer accounts, with bills expected to increase as a result.
Ofgem said Igloo Energy, Symbio Energy and Enstroga had become the latest companies to succumb to a gathering crisis that shows no sign of abating, with gas prices remaining stubbornly high amid international shortages as winter approaches.
The regulator emphasised that customers would not have any disruption to the supply of energy to their homes, adding that anyone with credit in their accounts with those companies would not lose their money. But it will have to find a new provider for nearly a quarter of a million people through its supplier of last resort scheme, under which financially healthy companies take on customers from collapsed rivals.
Those that were on cheaper fixed-rate tariffs, often used by smaller, start-up energy companies to woo new customers, will see their bills increase to the governments energy cap, which is £1,277 for a household with average usage. A report by Citizens Advice, published today, has found that consumers who are moved to a new supplier typically pay £30 a month more than before. Advisers at the charity fear many will face fuel poverty this winter and could end up turning off their fridges and freezers, relying on hot-water bottles for warmth and requesting support to buy extra duvets and blankets.
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https://www.theguardian.com/money/2021/sep/29/three-more-uk-energy-suppliers-toppled-by-gas-price-surge