Bulb is the latest in a long list of energy providers to have gone bust over the last year, with many more energy companies expected to fall – but which ones have actually gone and what will happen if yours folds?
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With rising fuel costs, the Office of Gas and Electricity Markets (Ofgem) has raised the cap on bills to help providers stay afloat.
It is feared that energy prices for some UK homes could rise between £139 and £1,277, to coincide with a £20 reduction in Universal Credit.
The news comes as major provider, Bulb – the UK’s seventh largest energy provider, announced it was heading for administration in November.
It follows a spate of high-profile energy company foldings.
But which companies closed in 2021 and who is left?
Why are energy companies going bust and which ones have closed down in 2021?
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The main reason for the collapse of so many of the nation’s energy companies is the rising price of fuel around the world.
This has been caused by a perfect storm of decreased supply from Russia, heightened demand in Asia and the closure of several North Sea platforms for maintenance.
With a greater demand for energy as society reopens post-pandemic, many suppliers have been unable to buy fuel for less than they’ve been selling it.
The price of wholesale gas has increased 250% since the start of the year, with a 70% increase taking place in August alone according to Oil & Gas UK.
While at the start of the year there were 71 registered energy suppliers in the UK, industry forecasts are predicting this number could be as low as ten by the end of 2021.
Here are all the companies that have gone so far:
- Simplicity Energy – January 2021
- Green Network Energy – January 2021
- Hub Energy – August 2021
- PfP Energy – September 2021
- MoneyPlus Energy – September 2021
- Utility Point – September 2021
- People’s Energy – September 2021
- Green – September 2021
- Avro Energy – September 2021
- Igloo Energy – September 2021
- Symbio Energy – September 2021
- ENSTROGA – September 2021
- Pure Planet – October 2021
- Colorado Energy – October 2021
- Daligas – October 2021
- GOTO Energy – October 2021
- Bluegreen Energy Services Limited – November 2021
- Omni Energy Limited – November 2021
- MA Energy Limited – November 2021
- Zebra Power Limited – November 2021
- Ampoweruk Ltd – November 2021
- CNG Energy – November 2021
- Neon Energy – November 2021
- Social Energy Supply – November 2021
- Bulb – November 2021 (in administration and will continue to operate normally under them for now)
Which energy companies can you switch to if your supplier has gone bust
Ofgem advises waiting to be switched over to a new provider automatically before making a decision about who to use long term.
If your supplier ceases to trade it might take a few weeks before your new provider is confirmed, however you should expect to be contacted with information about who they are and when your account will be fully transferred.
The six biggest energy companies are less at risk of going bust than the many smaller ones and so may be a sensible option to swatch to. They are:
- British Gas
- EDF Energy
- Scottish Power
More information about what to do if an energy supplier goes bust can be found at Citizens Advice.