Energy firms cease trading with more to follow
Energy firms cease trading with more to follow Sep 24, 2021
The collapse of energy firms has effected nearly 1.5 million customers with Avro Energy and Green Supplier Ltd ceased trading On Wednesday 21 September.
The firms represent a combined 830,000 customers who will now automatically be switched to new energy providers by the regulator Ofgem.
Furthermore, the customers transferred will be facing record high gas prices as a result of being placed on standard tariffs which will be more costly as a new energy price cap.
October’s price cap rise means that each customer of the collapsed energy firms could be facing upwards of a £139 rise in energy bills.
Ofgem now has the responsibility of deciding which suppliers will take on Greens 250,000 and Avro’s 580,000 customers.
Experts recommend customers not start looking for alternative providers straight away as those affected will be transferred to an as-of-yet unannounced new supplier whilst the gas supply will continue as normal in the meantime.
Justina Miltienyte, energy expert at Uswitch said:
“If you are coming to the end of your fixed deal, our advice is to hold tight, stay put and be rolled over on to your supplier's standard variable rate”
Only Avro Energy and Green have collapsed so far but if the rise in energy prices is to continue further firms could follow.
This chain of issues may lead to a change in government policy and state backed loans being handed out for larger energy firms.
However according to the BBC, ministers currently believe that the idea to provide loans is now "very much on the back burner" and its intention is to "tough this one out".