décembre 3, 2021

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Dalegas becomes latest energy supplier to collapse amid « unprecedented conditions » | Business news

Energy supplier Daligas is set to become the industry’s latest victim as the company collapses under pressure from record-high wholesale prices and volatile market conditions.

It is the third case to collapse this week.

The London-based company, which has 9,000 customers, said it was unable to keep its team and business running due to the crisis currently roiling the energy sector.

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Business again on gas price cap and fuel costs

He blamed « unprecedented conditions » – including UK energy price caps and rising wholesale prices – for the collapse of the resource.

So far, more than a dozen energy companies have gone out of business since the beginning of September as they struggle to deal with wholesale prices.

Pure Planet and Colorado Energy said they halted trading on Wednesday night, and Ofgem later confirmed that its customer bases would allocate a new resource in the coming days.

BP-backed Pure Planet, which has 235,000 households on its books, ran into trouble when the energy giant declined additional funding.

Colorado Energy had just 15,000 customers.

The regulator’s statement said: “Under the Ofgem safety net, customers will continue to be supplied with power and the funds that local customers have paid into their accounts, where they are placed in credit, will be protected.

“Customers of these suppliers will be contacted by their new supplier, which will be selected by Ofgem.”

The demise of Pure Planet and Colorado means that 14 small suppliers have collapsed this year — 11 of them in the past six weeks.

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They have been hit by business models that expose them to near-term crude energy delivery contracts, which have risen – more than 500% in one phase this year – due to a combination of supply pressures across Europe.

They include a shortage of gas stocks after a cold end until last winter and intense competition from Asia to replenish stocks.

In the UK, bad weather conditions for wind generation have boosted demand, and a fire on an electric interconnector with France in Kent last month is also a contributor.

The consequences of the energy crisis were widespread even before winter came.

Business Minister Kwasi Kwarteng has Appealed for Treasury assistance To support high energy users in industry – such as steel and chemical plants – amid warnings that unprecedented cost increases will force them to stop.