October 1, 2023

The Catholic Transcript

Complete News World

Blow the bulb.  Seventh largest energy supplier in the UK declares bankruptcy - Energy

Blow the bulb. Seventh largest energy supplier in the UK declares bankruptcy – Energy

Bulb, the seventh largest energy supplier in the UK with 1.7 million customers, announced today that it has gone bankrupt due to rising gas prices, launching a process involving government intervention.

In a statement, the company said it would be placed under “extraordinary management” but assured customers that the service would continue and charges would remain unchanged.

“Extraordinary management is designed to protect customers from a large energy supplier that has gone bankrupt,” he explained. The regulator ofgem confirmed that the bulb was “operating normally” and that customers “would not be disturbed by the service and their bills and charges would continue.”

If confirmed, Pulp will be the first company to benefit from the extraordinary administrative regime, during which the government will continue to finance the operation until the company is recovered, sold or customers are transferred to other suppliers.

So far, about 20 energy providers that went bankrupt this year due to the crisis are small enough for customers to be freed by a major competitor.

Avro Energy, with about 580,000 customers, is by far the largest British energy supplier in bankruptcy.

Rising gas prices in recent months have been the result of a number of factors, including a lack of supply in the UK, an increase in international demand due to the post-epidemic economic recovery, and a reduction in supply from Russia.

“Wholesale market prices have risen and are highly volatile,” the Bulb report, founded in 2005, explained, extending to France, Spain and Texas in the United States.

Recently, news of the suspension of the approval process for the Nord Stream 2 pipeline between Russia and Germany has further increased the price, which has increased the pressure on companies in the industry.

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Currently there is a price limit. [‘price cap’] Despite a 12% increase on October 1, energy prices imposed by the British government to avoid unreasonable tariffs are still below the price for energy suppliers.

Regulator Ofgem opened a public consultation on Friday, calling for “proposals to ensure that the price ceiling reflects the costs, risks and uncertainties faced by energy suppliers.”