Gas crisis: Four more energy suppliers expected to fold

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Four more energy suppliers are expected to stop trading as early as Wednesday after contacting regulator Ofgem on Tuesday to apply emergency measures.


The companies started discussions to enter its Supplier of Last Resort (SOLR) system, which is when Ofgem picks a new supplier to ensure customers can keep the light on and their credit balances remain protected.


READ: Centrica target raised as gas crisis wipes out competition


Pure Planet, Ampower, Zebra Energy and Neon Reef may be among the soon-to-go suppliers, Sky News reportd.


Pure Planet has 250,000 customers, according to weekend reports, and was facing the end of financial support by backer BP PLC (LSE:BP.).


So far, over 1.7mln UK customers have been moved to other suppliers after nine firms went bust due to the soaring energy prices.


Centrica PLC (LSE:CNA)’s British Gas, EDF Energy and Octopus Energy were selected to pick up the households and businesses left behind.


Wholesale gas prices have soared by more than 600% over the past twelve months due to a combination of low stocks, outages in supplies to Europe and poor wind speeds affecting renewable generation.


Small companies without hedging in place have been unable to pay the higher prices to meet contractual obligations.

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