Gas price crisis ‘could force small suppliers out of business’

A series of disruptions to the gas market last week could threaten the wave of smaller energy suppliers across the UK. Media reports suggest gas prices for this winter’s coldest […]

Register now!

By Jonny Bairstow

A series of disruptions to the gas market last week could threaten the wave of smaller energy suppliers across the UK.

Media reports suggest gas prices for this winter’s coldest months remain a third higher than the same time last year.

Toto Energy, a relatively recent entrant to the market, has announced a 50% price hike for its customers.

The Sunday Telegraph reports energy bosses said smaller suppliers could potentially go bust due to offering very low rates without the financial backing to absorb market shocks.

The paper says Ofgem is monitoring financial risks, individual suppliers and future market price increases.

Last week’s price spike occurred following the emergency shutdown of one of the North Sea’s largest pipelines due to technical issues and a separate incident involving an explosion at a key gas hub.

The upheaval has occurred as the industry prepares for the government’s controversial energy price cap legislation.