The domino effect of the UK’s energy market seems to be in full swing as two more energy suppliers have ceased trading today.
Avro Energy and Green Supplier Limited have today been added to the long list of companies that went bust in the last couple of weeks amid soaring energy prices.
The announcement is expected to affect a total of 835,000 domestic customers.
Together the suppliers represent a share of 2.9% of domestic customers in the market, Ofgem said.
Under the regulator’s safety net, the energy supply of the two failed companies’ customers will continue and outstanding credit balances will be honoured.
Customers will be contacted by the new supplier that will be chosen by Ofgem.
Neil Lawrence, Director of Retail at Ofgem, said: “Ofgem’s number one priority is to protect 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.”
Last week, Ofgem ordered Avro Energy to provide financial and other information related to the company’s activities.
Gillian Cooper, Head of Energy Policy for Citizens Advice, said: “These latest failures will add to people’s worries at what’s already an extremely unsettling time. Supplier collapses and rocketing energy prices, combined with the looming cut to Universal Credit, are creating huge amounts of uncertainty for millions of people.”