UK energy companies go bankrupt due to record gas prices
Two more utilities have gone bankrupt in the UK, leaving about 600 customers in need of a new supplier amid record electricity and gas prices. This is reported by the American edition OilPrice, informing about the next problems that have begun in the European energy market.
Ofgem announced that Utility Point and People's Energy have ceased trading. They became the sixth and seventh energy companies in the country to do so in 2021.
- said in the publication.
Bournemouth-based Utility Point supplied electricity to 220 customers, while London-based People's Energy had 350 customers. The regulator must now appoint a new supplier to take responsibility for households after market problems. PfP Energy and Moneyplus Energy confirmed last week that they are also discontinuing trading, leaving another 100 customers in need of a new supplier. The wave of bankruptcies comes amid record increases in energy prices due to a combination of weak wind power and global gas shortages. The increase in prices is expected to lead to an increase in household electricity bills until 2022, which will lead to more bankruptcies and the exit of companies from this business, the newspaper writes.
Although news Supplier termination can be a concern, Utility Point and People's Energy customers have nothing to worry about. As part of our security system, we will ensure the continued supply of energy. If you are an internal consumer and you have credit in your Utility Point or People's Energy account, it is protected and you will not lose money owed to you
- assured Neil Lawrence, director of retail sales of Ofgem, summed up the media.
Note that the price of "blue fuel" in Europe has reached $ 900 per thousand cubic meters. This cost of raw materials has already begun to affect the industry. For example, fertilizer manufacturer CF Industries Holdings from the United States announced that it is temporarily suspending operations at two of its plants in the UK.
Market experts have noticed this. They warn that due to the shutdown of these enterprises, fertilizers may rise in price and this will affect the cost of agricultural products. Further, prices will rise along the entire consumer chain, which will negatively affect inflation.
In addition, the rise in gas prices stimulates the increase in the cost of other fuels. In Europe, coal-fired power plants started working again, and the cost of "fossil fuel" soared upward. Experts have practically no doubts that the gas price will surpass the $ 1000 mark per thousand cubic meters in the near future.
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