News In 5 Minutes

News When You Want It

UK energy crisis latest: Daligas goes bust as thousands of Brits hit – Ofgem statement | UK | News


Daligas has become the 12th energy supplier to collapse under the pressure of record-high wholesale gas prices. The London-based firm provides gas to around 9,000 UK households and non-domestic customers, the regulator Ofgem said.

In a statement on its website, Daligas said: “Due to the unprecedented energy market conditions, the record high wholesale prices and the current energy cap set by the industry regulator Ofgem, we are unable to keep our team and business operating.

“From all of us, please accept our deepest thanks for your support throughout all these years.”

Daligas is the third UK supplier to cease trading this week following Pure Planet and Colorado Energy.

Daligas customers will continue to receive gas and the regulator will appoint a new provider.

Neil Lawrence, director of retail at Ofgem, said: “Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.

“I want to reassure affected customers that they do not need to worry. Under our safety net, we’ll make sure your energy supplies continue.

“If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you.

“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal.

READ MORE: Brexit LIVE: Furious Frost to lay down law in EU showdown

The safety-net sets a maximum fee an energy supplier can charge its UK customers – and on October 1 this rose by 12 percent to £1,277 for normal energy usage.

The threshold cannot be changed until the next review in April.

The collapse of Daligas comes just 24 hours after Pure Planet and Colorado Energy, which have a combined 250,000 UK customers, also failed.

On September 29, Igloo, Symbio and Enstroga became the first three casualties of the volatile market, affecting a combined 233,000 domestic customers.

They have since been followed the People’s Energy, Green Supplier Ltd, Utility Point, PfP Energy, MoneyPlus Energy, and Avro Energy, affecting almost 1.5 million more householders.

Business Secretary Kwasi Kwarteng has so far refused to bail out struggling firms and has warned many more could go to the wall.

But, Mr Kwarteng has urged the Treasury to support high users of energy in industry, such as steel and chemical plants.

Chancellor Rishi Sunak also appeared to rule out financial support for energy companies.

Speaking on Thursday, Mr Sunak said “it’s not the government’s job” to manage the costs of individual products and insisted he “believes in a market economy”.



Source link