Bluegreen becomes latest energy supplier to cease trading amid 'unsustainable situation'

·2-min read

Watch: Bluegreen becomes latest energy supplier to cease trading amid 'unsustainable situation'

Energy supplier Bluegreen has become the latest to collapse amid a crisis in the sector caused by a spike in wholesale gas prices.

The company, which has 5,900 domestic customers, became the 14th supplier to cease trading in the last two months - with the crisis overall affecting a total of about two million households.

It comes days after Sky News revealed that the government was accelerating contingency plans for the collapse of Bulb, Britain's seventh-biggest energy supplier.

Energy companies have run into difficulties because the surge in wholesale prices means they may be contracted to sell energy to customers for less than they are paying for it.

Bluegreen Energy said in a statement on Monday that the crisis had left it in an "unsustainable situation" and it had been "regrettably... forced to make the difficult decision to cease trading".

Regulator Ofgem reassured customers that their supply would continue and that those who have paid into their accounts will be protected if they are in credit.

They will be switched to a new supplier, chosen by Ofgem, and their tariffs subject to the energy price cap.

Neil Lawrence, director of retail at the regulator, told customers: "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. We will update you when we have chosen a new supplier, who will then get in touch about your tariff."

On Friday, Ofgem said it would consult on changes to the price cap because the ongoing industry crisis had "changed the perception of risk and uncertainty in this market".

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