Energy Suppliers Going Bust, Again…

It seems like 2022 will continue in the same fashion that 2021 ended.

Coronavirus is still rampant, a new political scandal in the news every week, and more energy suppliers going under…

It seems at this point that the energy crisis will continue trundling on for the foreseeable future, with current geopolitical events likely exacerbating the situation further.

In this article we will take a quick look at two of the most recent energy suppliers to cease trading – what happened, and why?

Together Energy

Together Energy Retail is both a gas and electricity provider which has stopped trading in the last couple of weeks – news which will affect 176,000 households.

Together Energy have left the following short statement on their website –

“We regret to inform you that the company will cease trading with immediate effect. We want to thank you sincerely for your custom over the past five years.”

The customers of Together Energy (and their sub-brand, Bristol Energy) will be contacted by a new energy supplier, which will be chosen by the energy regulator – Ofgem. Together Energy did not service business customers, with only one commercial client on their books.

Ofgem has stepped in to advise Together Energy customers on what to do now – with the overriding message being to take a meter reading and sit tight until they are contacted by a new energy firm.

Unsurprisingly, experts have vocalised that the collapse of another UK energy supplier means further disruption for customers and rising prices in April. The head of energy policy for Citizens Advice, Gillian Cooper, had this to say;

“Together Energy is the 27^th energy supplier to have collapsed since August… As well as causing considerable disruption and confusion for customers, today’s announcement will add to the £2.6 billion bill consumers are already facing due to these failures…With the price cap expected to go up again in April and the cost of living soaring, many are already facing impossible choices between heating and eating.”

Ofgem director of retail, Neil Lawrence said this on the subject;

“Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling. I want to reassure affected customers that they do not need to worry, under our safety net we’ll make sure your energy supplies continue… Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal.”

The collapse of Together Energy had been raised as a distinct possibility by some, as they struggled to find new sources of funding. They were still trying to find funding as they collapsed.

The loss of Together Energy is a desperate tragedy, as around 90% of their staff come from the 10% of poorest postcodes across Scotland. This means that their collapse will disproportionately effect some of the most vulnerable communities in the UK.

Further to this, all of their energy comes from renewable sources – an admirable feat. Although based in Clydebank, the firm is half-owned by Warrington Borough Council. The local authority have since been criticised by MPs for their reckless policy in investing into the energy supplier.

Together Energy are just one of many firms who have struggled to stay afloat due to raising gas prices and an inability to pass this cost onto their consumers due to the Ofgem price cap. This has been a hotly debated topic in the last few months.

Energy providers take the stance that they have to sell energy for far less than it costs them to supply it, incurring heavy losses. Many of the firms who have collapsed so far have been directly due to this pressure.

Together Energy Customers – Where Now?

British Gas has since been appointed the Supplier of Last Resort (SoLR) for ex-Together Energy customers. British Gas will absorb the 176,000 domestic customers and one business customer into their operations. Ofgem has stated that any funds that have been paid by customers into their accounts already will be protected – with energy supplies set to continue as normal after the switch of suppliers on the 23^rd of January.

Interestingly, this event marks the sixth time in the last six months that British Gas have taken on customers of failed suppliers. Together Energy is now tacked onto an ever growing list of Neon Reef Limited, Social Energy Supply, People’s Energy, PfP Energy, and MoneyPlus Energy.

Bristol Energy

In similar fashion, Bristol Energy have announced to their customers that they will cease trading with immediate effect after their owner, Together Energy, went bust.

The acquisition of Bristol Energy happened in 2020 (before the current energy crisis) by Together Energy. Bristol energy served customers in their local area, but also residential customers in Somerset and the South West. As already mentioned, Warrington borough council had bought part-ownership into both businesses.

The following statement was advertised on both businesses’ websites;

“A message to all our customers, we regret to inform you that the company will cease trading with immediate effect… We want to thank you sincerely for your custom… Despite press reports, we did buy enough gas and electricity for your needs, but the sustained increase in wholesale prices and the securities required to continue to forward purchase the energy, have meant that it is untenable for us to continue.”

Bristol Energy has also stated their belief that Ofgem will choose the best supplier available for their customers.

Energy Price Cap – The Basics

The price cap limits the amount that firms can charge their customers on their default gas and electricity tariffs – usually variable-rate deals. As of just now, the cap is currently set at £1,277 for those on default tariffs and £1,309 for those on pre-pay contracts. In the simplest sense, it is a cap on how much suppliers can charge consumers to pay for energy.

Customer Billing – Will I Be Affected?

If you are a customer of either Bristol Energy or Together Energy, then it is difficult to say how this will affect your bills. It is advised to take your most recent meter reading and be aware of your current energy contract terms before engaging with your new SoLR (Supplier of Last Resort.

It is important to remember that energy prices as a whole are rising, and this will be passed onto consumers through energy bills, making it something to keep a close eye on.

Different suppliers will feel the pinch in different ways so it is crucial to be aware of the current situation your energy supplier finds themselves in. Energy Solutions keeps up to date supplier profiles for all of the energy suppliers in the UK, which you can find here.

At a time where bills look set to rise due to market volatility, it is also a good idea to ensure that you are not being overcharged for any of your utilities. It can be a tricky task to navigate but Energy Solutions has curated online tools to remove the hassle.

You can find our free online Gas Bill Calculator here.

You can find our free online Electricity Bill Calculator here.

Energy Solutions by us, for you

At a time of great uncertainty in global energy markets, it is easy to feel lost in it all.

Keeping up to date with developing situations and the associated ramifications is a tricky and time-consuming job. It is also one that is not likely a priority for you and your business.

So, what do you do?

You partner with energy procurement experts to take the load off of your desk.

Energy Solutions have been trusted brokers for countless businesses for over twenty years, which means we know how to navigate the energy markets during a time of uncertainty.

Website: https://www.energybrokers.co.uk/

Email: nick@energybrokers.co.uk

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