With the energy market tougher than it’s ever been for suppliers, Igloo (along with small suppliers Enstroga and Symbio) has joined a growing list of energy suppliers going bust largely as a result of high wholesale energy prices.
Following hot on the heels of Avro Energy and Green, which went bust last week, Igloo’s 179,000 customers will now be transferred to a new supplier under Ofgem’s Supplier of Last Resort safety net. The same will happen to the 6,000 customers of Enstroga and the 48,000 signed up to Symbio. A new supplier is yet to be announced.
Justina Miltienyte, energy policy expert at Uswitch.com, said: “The difficult wholesale energy market situation brings more bad news every week and now another three suppliers have gone into administration.
“In total, 233,000 more customers will be joining the almost two million who have already been displaced by their energy provider this year and we may not have seen the end to this situation.
“With the headlines going from bad to worse, many customers will be worried, but those impacted by this news can be reassured that their energy supply will continue as normal and credit balances will be protected.
“It’s important that all affected customers hold tight for now while they are moved to a new supplier appointed by Ofgem. They should wait for the dust to settle on the current situation before weighing up whether there are any better deals available elsewhere.
“We recommend that customers make a note of their meter readings now, and again when contacted by their new supplier, to ensure bills are accurate.”
The wholesale energy price rise has resulted in many smaller energy suppliers suddenly spending a lot more on wholesale energy than they’re able to sell it for. This isn’t a feasible situation for them, so more are going bust in a short space of time. You can find more information here.
There are several factors that have contributed to high wholesale energy prices, including high gas costs, low wind energy generation and a fire at the electricity interconnector between Britain and France. A cold forecast for winter also means that demand for gas will be particularly high at a time when supplies are relatively low.
To date (29 September 2021), the following suppliers have gone bust since wholesale prices rocketed:
Customers should be assured that their energy supply won’t be interrupted at any point, though they should check the deal they’ll be on with the new supplier, as their prices will probably change. Find out more in our guide.