EDF stated that it was not prepared to accept new customers from companies in the energy sector who have been bankrupted by high prices of gas.
EDF’s Philippe Commaret stated that the company was working to move customers from Utility Point, which it said had two other companies go under on Wednesday.
Ofgem designates companies to be a supplier of last resort for those whose energy companies have ceased trading.
Mr. Commaret stated that it is now a big question whether regulators can forcibly force these firms to accept such customers.
Due to a sharp increase in wholesale gas prices for this year, Colorado Energy (Pure Planet) and Pure Planet went bankrupt on Wednesday.
Nearly 2 million customers have suffered from 11 collapsed energy businesses since September.
- How can I help my energy supplier go bankrupt?
- What is the cause of high gas prices and how can we reduce our fuel costs?
EDF now has 220,000 Utility Point customers. Utility Point went bankrupt last month. It was appointed in January by Ofgem for 360,000 homes from Green Network Energy.
Mr. Commaret stated that the question of Ofgem’s ability to force bigger energy companies into this role was “the biggest question in the industry at the moment”.
“What we’re seeing is that suppliers of last resort are becoming the most important.” [process]It has been very successful up to now, and we are proud of the industry’s willingness to assist customers in need,” he said on BBC Today.
“The big question is whether we can take that further. My view is that the top priority for us is clearly to provide quality service to our customers and not make them unhappy.”
Ofgem’s spokesperson said it could “direct” companies to accept customers from an insolvent supplier, but discussions must always be held between the regulators and the new company.
The recent collapses were attributed to energy firms and the price caps on customer’s energy bills.
Since January, wholesale gas prices rose by up to 250% and reached a peak in August. The price cap protects domestic customers living in England, Wales, and Scotland who are on standard tariff (or default) tariff from dramatic increases in energy prices.
Mr. Commaret stated that all suppliers were suffering right now.
M. Commaret commented on the possibility that EDF would accept customers from Colorado or Pure Planet.
“I will not apply to be supplier last resort for any additional customers until we have completed with the onboarding of Utility Point customers.”
The UK’s biggest energy firms have been named as suppliers of last resort for failed companies.
British Gas took on 441,000 combined customers from MoneyPlus Energy PFP Energy and People’s Energy. Octopus Energy has helped Avro Energy’s 580,000 clients.
E.On supplies last-resort services to 233,000 domestic customers including Symbio, Enstroga, and Igloo. Shell Energy will look after 255,000 Green Supplier Ltd. customers.
A quasi-temporary nationalization is a power that allows the government to designate a special administrator to provide uninterrupted electricity supply to its domestic customers.