These are turbulent times for the UK’s energy sector - and households are facing an uncertain time of rising prices and worrying news about suppliers going out of business.
In recent months, several energy companies have gone to the wall, leaving millions of customers dependent on the safety net provided by the market regulator, Ofgem. The regulator’s safety net maintains supplies to domestic customers and protects their credit balances while the energy watchdog moves their accounts to a new supplier.
Replacement suppliers
Late last year, for example, a clutch of energy providers took over the customers of Bluegreen, Ampower, Zebra Power, MA Energy, Omni Energy and CNG Energy. Replacement. You can see a full list of recent changes below.
The recent crop of significant corporate failures is blamed on rising wholesale prices, particularly for natural gas, which has risen in price by 250% since the beginning of 2021. Suppliers say that the presence of the cap prevents them from passing on price increases to customers.
The cap will next be reviewed in February and implemented in April. There are widespread fears that the cap for typical consumption could rise to £1,600 or beyond.
The table below reveals failed energy companies going back to 2016 and the scale of the upheaval in recent months is staggering.
| Date | Failed supplier | Customers | Acquiring supplier |
February 2022 |
Whoop Energy |
262 |
TBC |
February 2022 |
Xcel Power |
274 |
TBC |
| January 2022 | Together Energy Retail Ltd. | 176,000 | British Gas |
| December 2021 | Zog Energy | 11,700 | EDF |
| November 2021 | Entice Energy Supply Ltd | 5,400 | Scottish Power |
| November 2021 | Orbit Energy | 65,000 | Scottish Power |
| November 2021 | Bulb | 1,700,000 | *In special administration* |
| November 2021 | Neon Reef Ltd. | 30,000 | British Gas |
| November 2021 | Social Energy Supply Ltd. | 5,500 | British Gas |
| November 2021 | CNG Energy Ltd. | 41,000 | Pozitive Energy |
| November 2021 | Omni Energy Ltd. | 6,000 | Utilita |
| November 2021 | MA Energy Ltd. | 300 | SmartestEnergy Business Ltd. |
| November 2021 | Zebra Power Ltd. | 14,800 | British Gas |
| November 2021 | Ampower UK Ltd. | 2,000 | Yü Energy |
| November 2021 | Bluegreen Energy | 5,900 | British Gas |
| October 2021 | GOTO Energy | 22,000 | Shell Energy |
| October 2021 | Daligas | 9,000 | Shell Energy |
| October 2021 | Pure Planet | 235,000 | Shell Energy |
| October 2021 | Colorado Energy | 15,000 | Shell Energy |
| September 2021 | Symbio | 50,000 | E.ON Next |
| September 2021 | Igloo | 180,000 | E.ON Next |
| September 2021 | Enstroga | 6,000 | E.ON Next |
| September 2021 | Avro | 600,000 | Octopus |
| September 2021 | Green | 350,000 | Shell |
| September 2021 | People’s Energy | 350,000 | British Gas |
| September 2021 | Utility Point | 200,000 | EDF |
| September 2021 | PFP Energy | 80,000 | British Gas |
| September 2021 | Moneyplus Energy | 9000 | British Gas |
| August 2021 | HUB Energy | 15,000 | Eon Next |
| January 2021 | Simplicity Energy | 50,000 | British Gas Evolve |
| January 2021 | Green Network Energy | 367,500 | EDF |
| December 2020 | Yorkshire Energy | 74,000 | Scottish Power |
| October 2020 | Tonik Energy | 130,000 | Scottish Power |
| September 2020 | Effortless Energy | 2,500 | Octopus |
| March 2020 | Gnergy | 9,000 | Bulb |
| December 2019 | Breeze | 18,000 | British Gas |
| October 2019 | Toto | 134,000 | EDF |
| October 2019 | Uttily (Rutherford) | 280 | Total gas and power |
| September 2019 | Eversmart | 29,000 | Utilita |
| August 2019 | Solarplicity | 8,000 | EDF |
| August 2019 | Cardiff Energy Supply Ltd | 800 | SSE |
| March 2019 | Brilliant | 17,000 | SSE (currently SSE OVO) |
| January 2019 | Our Power | 32,000 | Utilita |
| January 2019 | Economy Energy | 237,000 | OVO |
| December 2018 | One Select | 33,000 | Together Energy |
| November 2018 | Spark Energy | 290,000 | OVO |
| November 2018 | Extra Energy | 108,000 | Scottish Power |
| October 2018 | Usio Energy | 7,255 | First Utility (currently Shell) |
| July 2018 | Iresa Energy | 95,000 | Octopus Energy |
| July 2018 | UK National Gas | 80 | Hudson Energy |
| January 2018 | Future Energy | 10,000 | Green Star Energy |
| November 2016 | GB Energy | 160,000 | Coop Energy |
| Date | Failed supplier | Customers | Acquiring supplier |
| December 2021 | Zog Energy | 11,700 | EDF |
| November 2021 | Entice Energy Supply Ltd | 5,400 | Scottish Power |
| November 2021 | Orbit Energy | 65,000 | Scottish Power |
| November 2021 | Bulb | 1,700,000 | *In special administration* |
| November 2021 | Neon Reef Ltd. | 30,000 | British Gas |
| November 2021 | Social Energy Supply Ltd. | 5,500 | British Gas |
| November 2021 | CNG Energy Ltd. | 41,000 | Pozitive Energy |
| November 2021 | Omni Energy Ltd. | 6,000 | Utilita |
| November 2021 | MA Energy Ltd. | 300 | SmartestEnergy Business Ltd. |
| November 2021 | Zebra Power Ltd. | 14,800 | British Gas |
| November 2021 | Ampower UK Ltd. | 2,000 | Yü Energy |
| November 2021 | Bluegreen Energy | 5,900 | British Gas |
| October 2021 | GOTO Energy | 22,000 | Shell Energy |
| October 2021 | Daligas | 9,000 | Shell Energy |
| October 2021 | Pure Planet | 235,000 | Shell Energy |
| October 2021 | Colorado Energy | 15,000 | Shell Energy |
| September 2021 | Symbio | 50,000 | E.ON Next |
| September 2021 | Igloo | 180,000 | E.ON Next |
| September 2021 | Enstroga | 6,000 | E.ON Next |
| September 2021 | Avro | 600,000 | Octopus |
| September 2021 | Green | 350,000 | Shell |
| September 2021 | People’s Energy | 350,000 | British Gas |
| September 2021 | Utility Point | 200,000 | EDF |
| September 2021 | PFP Energy | 80,000 | British Gas |
| September 2021 | Moneyplus Energy | 9000 | British Gas |
| August 2021 | HUB Energy | 15,000 | Eon Next |
| January 2021 | Simplicity Energy | 50,000 | British Gas Evolve |
| January 2021 | Green Network Energy | 367,500 | EDF |
| December 2020 | Yorkshire Energy | 74,000 | Scottish Power |
| October 2020 | Tonik Energy | 130,000 | Scottish Power |
| September 2020 | Effortless Energy | 2,500 | Octopus |
| March 2020 | Gnergy | 9,000 | Bulb |
| December 2019 | Breeze | 18,000 | British Gas |
| October 2019 | Toto | 134,000 | EDF |
| October 2019 | Uttily (Rutherford) | 280 | Total gas and power |
| September 2019 | Eversmart | 29,000 | Utilita |
| August 2019 | Solarplicity | 8,000 | EDF |
| August 2019 | Cardiff Energy Supply Ltd | 800 | SSE |
| March 2019 | Brilliant | 17,000 | SSE (currently SSE OVO) |
| January 2019 | Our Power | 32,000 | Utilita |
| January 2019 | Economy Energy | 237,000 | OVO |
| December 2018 | One Select | 33,000 | Together Energy |
| November 2018 | Spark Energy | 290,000 | OVO |
| November 2018 | Extra Energy | 108,000 | Scottish Power |
| October 2018 | Usio Energy | 7,255 | First Utility (currently Shell) |
| July 2018 | Iresa Energy | 95,000 | Octopus Energy |
| July 2018 | UK National Gas | 80 | Hudson Energy |
| January 2018 | Future Energy | 10,000 | Green Star Energy |
| November 2016 | GB Energy | 160,000 | Coop Energy |
Roughly the same number of customers have been affected by energy companies going bust in September 2021 as had been for the entire period from 2016 to 2020.
The recent spate of closures is evidence of the depth of the current crisis in the energy market. We’ll update the list if, as expected, further corporate casualties are announced.
Energy price cap rise
Earlier this summer, Ofgem announced that its price cap, which limits how much energy firms can charge their customers per unit of energy and associated standing charges, would rise by £139 to £1,277 from 1 October.
It’s worth remembering that this is the figure for a household with typical consumption values; actual bills will always be determined by how much energy is used.
The cap applies to approximately 11 million households on standard variable rate ‘default’ tariffs. The cost of prepayment tariffs is also capped. This figure also rose, by £153 to £1,309, at the start of this month and affects around four million households.
Other tariffs, notably fixed rate, fixed term deals, are not subject to the cap. Prior to September 2021, it was commonly the case for fixed deals to cost significantly less than the level of the cap.
This is no longer the case, however, because of the cost of wholesale energy.
The 12% increase in the price caps on 1 October was intended to allow suppliers to pass on the increased cost of buying bulk fuels. But escalating price rises since the caps were set mean many suppliers are now effectively operating at a loss.
What happens when a supplier goes bust?
The impact of a firm going bust is minimised by Ofgem’s safety net, which maintains their energy supply without interruption, and without customers having to take any action.
It arranges the transfer of customers’ accounts to a new supplier, working with the firms to honour customer credit balances and manage debt repayments.
Once the transfer is complete, each customer is free to move suppliers again if they wish. At present, however, they are unlikely to find a cheaper tariff than their nominated supplier’s ‘deemed’ tariff, which is required to operate within the Ofgem price cap.
