UK's Bluegreen Energy ceases trading, says regulator

·1-min read
Workers paint an electricity pylon near Lymm, northern England

(Reuters) -British energy supplier Bluegreen Energy Services ceased trading on Monday, regulator Ofgem said, joining more than a dozen suppliers to have gone bust in the country in recent weeks because of high wholesale energy prices.

Bluegreen Energy supplies about 5,900 domestic customers and a small number of non-domestic customers.

Britain's gas and electricity price cap for households rose by 12-13% from Oct. 1, but wholesale prices have risen significantly since that announcement was made in August.

Many British suppliers have struggled with soaring wholesale gas and electricity prices while the amount they are able to charge customers is limited by Ofgem's price cap.

Ofgem said on its website that domestic customers will be protected by the energy price cap when being switched to a new supplier.

"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," said Ofgem Director of Retail Neil Lawrence.

(Reporting by Priyanshi Mandhan in Bengaluru and Bozorgmehr Sharafedin in London; Editing by Devika Syamnath and David Goodman)

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