Avro Energy collapses along with Green Energy as more suppliers go bust

Two utilities collapsed today as wholesale gas prices continued to rise.

Green, who entered into crisis talks at the beginning of this week, has around 250,000 customers that Ofgem is now referring to a new supplier.

Avro Energy, with around half a million customers, will also hand customers over to Ofgem, who will assign them a new supplier.

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It comes just hours after the regulator warned that several companies will collapse in the coming weeks due to an “unprecedented” surge in wholesale prices.

Neil Lawrence, Director of Retail at Ofgem, said, “I want to reassure Green Supplier Limited customers that they don’t have to worry.

“Under our safety network, we ensure that your energy supply continues. When you have credit in your Avro Energy or Green Supplier Limited account, it is protected and you will not lose any money owed to you. “

A statement posted on Avro’s website said: “Avro Energy is ceasing trading. Ofgem, the energy regulator, is appointing a new supplier for its customers.

“Customers don’t have to worry, their supplies are secure and their domestic funds are protected.”

Energy experts have called it a “double blow” for the industry. Justina Miltienyte, energy policy expert at Uswitch.com, said: “This is a double blow to the energy industry and will add further concern to consumers.

“Avro and Green are exiting the market at the same time after People’s Energy and Utility Point ceased trading last week. Nine energy suppliers have been ousted so far this year, and more are likely to follow.

“Rising wholesale prices are making conditions more difficult for all providers, but challenger brands in particular are struggling to make ends meet.

“Affected customers will be moved to new Ofgem appointed suppliers, but for now they should wait for their account to be transferred to the new supplier before attempting to switch.

“Customers can rest assured that their energy supply will continue to run as usual and that their accumulated credit will be protected.

“We recommend Avro and Green customers write down their meter readings now and when they contact their new supplier to ensure that the invoices are correct.

“Once the new supplier is appointed, they will contact you for more information.”

It comes when Jonathan Brearley, CEO of Ofgem, said that “far more” hundreds of thousands of customers could be hit by supplier bankruptcy.

“Look at the change in the price of gasoline – we think we’ve never seen it move at this rate before,” he said.

“We assume that a large number of customers will be affected, we have already seen hundreds of thousands of customers affected, that can go far beyond that.

“I find it very difficult to put a figure.”

Speaking to MPs at a hearing for the Special Committee on Business, Energy and Industrial Strategy, he also said it was difficult to come up with a number on how many companies would go out of business, adding, “We are going to have a ‘Lessons Learned ‘want to have. thereafter.”

And he said, “We expect more (suppliers) to be unable to cope with the circumstances we are in.”

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