Energy suppliers across the UK are going bust one after another, as wholesale gas prices continue to rise. What’s more, the list of casualties probably won't end at the six that have collapsed so far.
Prices for energy bills have risen for around 800,000 households and will continue to climb as customers are forced to transfer to new suppliers.
All eyes are on troubled companies like Igloo Energy to see whether they might be the next to go bust. Here’s the current situation for Igloo Energy.
Why are wholesale gas prices rising?
There is a number of reasons, all coinciding at once, for why wholesale gas prices are on the rise, not least that demand is high around the globe.
Warnings started back in August that energy bills were expected to rise later on in the year, as gas prices hit a record high as a result of inflation and easing pandemic restrictions. On top of that, planned maintenance was carried out at electricity plants across the UK, meaning that 20% of the UK’s nuclear power is offline at the moment.
Up until now, the government has protected households from the brunt of the gas shortage with the energy price gap.
Which energy suppliers have already gone bust?
As a result of the higher prices, customers of many smaller energy suppliers are currently paying less than the companies are. With no real profit coming in, these suppliers are starting to feel the heat.
Six UK energy suppliers have already been forced to close down as a result of the increasing pressure and they’re not expected to be the only casualties.
Demand will only continue to increase as we head into winter, putting the strain on dozens of smaller energy suppliers.
Have Igloo Energy gone bust?
Finance journalist Martin Lewis tweeted a warning on September 22nd about Igloo Energy, suggesting that the losses felt across the energy industry might affect Igloo in the near future.
"Strong rumours that Igloo is appointing administrators,” Mr Lewis wrote on Twitter. “Igloo is a big one. If you’re a customer, screen grab your status now and do a meter reading just in case.”
It looks like Igloo Energy could be in the midst of insolvency discussions, but that's not confirmed right now. The company is thought to be in talks with Alvarez & Marsal, a consultancy company that is also currently overseeing fellow struggling energy supplier, Green. Igloo has also stopped taking on new customers.
Back on September 21st, Ofgem also issued a provisional order to Igloo Energy for not paying £316,582 in Feed in Tariff payments, which was due on September 17th, according to Energy Review.
Ofgem’s safety net means that the energy supply to all affected customers will continue and credit balances are protected.
How many customers did Igloo Energy have?
Igloo Energy had 179,000 residential customers across the UK who may be affected.
If Igloo was your energy supplier, then you don't need to do anything yourself. Ofgem will take action to switch you over to a new supplier automatically.