Goto Energy is the latest UK-based energy company to stop trading in light of a steep rise in wholesale gasoline prices.
This firm provided electricity and gas for approximately 22,000 households. The customers will now move to a different supplier.
The company is one of many small companies that has been forced to close due to a rise in gasoline prices.
The energy regulator Ofgem is now looking for a supplier to households. They are asked not to act until this transfer occurs in the next few weeks.
Goto Energy’s failure brings to two million the number of UK-based customers who are now affected by current energy crisis.
- How can I help my energy supplier go bankrupt?
Ofgem claimed that global gas prices have increased by unprecedented amounts, increasing 250% from the beginning of the year. This is putting pressure on suppliers.
Neil Lawrence (Director of Retail at Ofgem) stated, “Ofgem’s Number One Priority is to Protect Customers.”
I am here to tell affected customers to relax: our safety net will ensure that your energy supplies are maintained.
Lawrence stated that credit is protected so customers don’t lose money.
Justina Miltienyte from Uswitch.com, an energy policy expert said that Goto Energy was now the 16th supplier to withdraw the market.
Her advice was to ensure that Goto Energy customers didn’t do anything before they switched to another supplier. This is because switching providers could cause delays for credit recovery.
They should take note of the readings on their meters now and when they are contacted again by their supplier to make sure their bills are correct.
Pure Planet was backed last week by oil giant BP. Colorado Energy also joined the list of smaller energy companies that went bust in recent weeks.
Pure Planet claimed it had become caught between rising cost and UK’s energy price limit, which caps what companies can charge their customers.
It stated that this had made its business unsustainable.
In September, nine suppliers were unable to pay their bills. However, Kwasi Kwarteng (business and energy minister) did not exclude support for energy companies in trouble, though he cautioned that there could be more.
This price cap covers 15,000,000 households in England, Wales, Scotland and protects them from default tariffs. It limits charges such as how much energy customers are charged per unit.
- Why is gas so expensive?
- Expect PM to support loans for firms that are affected by high gas prices
Providers claim that they are unable to pass the higher wholesale gas prices onto customers as a result of this cap.
Avro Energy is one of several suppliers which has recently been liquidated.
The supply chain has been affected by rising prices.
CNG, the gas shipping company for CNG, wrote to its customers last week informing them that it will no longer be supplying wholesale fuel.
CNG is available to approximately 46,000 small business owners, as well as 10-15 domestic suppliers through its wholesale operation.
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