Avro Energy and Green Supplier Limited have become the latest small suppliers to fail, amidst a turbulent period.
They follow People’s Energy and Utility Point collapsing last week, and PfP Energy and MoneyPlus Energy the week before. As high wholesale power prices continue on the back of record high gas prices – which have risen by 250% since the beginning of the year – more small suppliers are expected to fold.
Recent research from Baringa for The Times, for example, suggests that 39 more suppliers could fail in the next 12 months, which would leave just 10 in the market.
Arvo Energy provided power to around 580,000 domestic customers, and Green around 255,000 domestic customers and a small number of non-domestic customers. Together, they represented 2.9% of domestic customers in the market.
The collapse of Avro follows it being expelled from Elexon’s Balancing and Settlement Code along with AMPower UK and Delta Gas And Power this week. Additionally, last week Ofgem issued it with a provisional order, compelling it to provide financial information.
Meanwhile, reports of Green’s imminent collapse were reported by Sky News on Tuesday 21 September, which suggested it was working with management consultant Alvarez & Marsal to coordinate plans to use the Supplier of Last Resort (SoLR) mechanism.
Following their collapse, People’s Energy’s customers have been appointed to British Gas and Utility Point’s to EDF.
These most recent collapses follow Hub Energy, Green Network Energy and Simplicity Energy all closing earlier in 2021 and Yorkshire Energy, Tonik Energy, Effortless Energy and GnERGY doing so in 2020.