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Bluegreen Energy Services collapses as energy supply market volatility continues into November

High prices are expected to continue in the UK as we enter winter, with demand set to increase. Image: Getty.

High prices are expected to continue in the UK as we enter winter, with demand set to increase. Image: Getty.

Bluegreen Energy Services has become the first supplier to fail in November, leaving around 5,900 domestic customers and a small number of non-domestic customers to be picked up by the Supplier of Last Resort (SoLR) mechanism.

The company forms part of the wider bluegreen energy group, which was founded in 2011 in the US. It then expanded into Japan in 2016 before entering the European market in 2019.

In a statement, the company said: “Due to the energy crisis in the UK, we find ourselves in an unsustainable situation and regrettably, Bluegreen Energy Services Limited is forced to make the difficult decision to cease trading.”

Bluegreen Energy Services is the latest in a string of companies to collapse amid high wholesale energy prices. Q3 2021 saw day-ahead prices up 69% from the previous quarter, averaging £126.14/MWh.

High prices have been largely driven by a global gas shortage, with a number of outages and low winds in September putting a particular strain on Britain’s grid.

As such, four suppliers – Goto Energy, Pure Planet, Colorado Energy and Daligas – all ceased to trade in October, and eleven suppliers – ENSTROGA, Igloo Energy, Symbio Energy, Hub Energy, Green Network Energy, Simplicity Energy, Avro Energy, Utility Point, People’s Energy, PfP Energy and MoneyPlus Energy – shuttered in September.

With high prices expected to continue as the weather continues to get colder, more suppliers are expected to fail in the coming months. Simply Your Energy, Maxen Power Supply and Omni Energy are to be expelled from the Balancing and Settlement Code, a step that preceded the collapse of a number of companies in recent months.

Whilst Ampower and Whoop Energy have been issued the final orders from Ofgem, for failing to make Renewables Obligation payments. This follows a consultation launched against the companies along with Goto Energy, Home Energy Trading and Colorado Energy, two of which have since shuttered.

Ofgem has said it will consult on the price cap methodology in response to the slew of collapses.

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