Two more suppliers have been removed from Elexon’s Balancing and Settlement Code (BSC) following their collapse earlier this week.
Igloo Energy and ENSTROGA have had their right to register any metering systems and further balancing mechanism units with Elexon suspended with immediate effect.
This follows the two shuttering on Wednesday 29 September, along with Symbio Energy, which was removed from the BSC earlier in September and reconfirmed by Elexon yesterday.
Collectively, the three suppliers represent about 1% of Britain’s domestic customers. ENSTROGA had 6,000 domestic customers, Igloo Energy around 179,000 and Symbio Energy around 48,000 domestic customers and a small number of non-domestic customers.
Over the last month Elexon has also expelled Avro Energy, Utility Point, People’s Energy, PfP Energy and MoneyPlus Energy from the BSC. All of these suppliers have since shuttered and their customers have been taken on by Suppliers of Last Resort.
High wholesale power prices in the market over the last month has led to this particularly high period of supplier collapse. A global shortage of gas, combined with a number of planned and unplanned generation outages in the UK, and low wind speeds created the perfect storm to drive up prices.
However it has been a turbulent few years in the supplier market, with Hub Energy, Green Network Energy and Simplicity Energy all closing in 2021 and Yorkshire Energy, Tonik Energy, Effortless Energy and GnERGY doing so in 2020.
With tight margins expected to continue through winter, suppliers who are not hedged against power price jumps may struggle. Recent research from Baringa for The Times has suggested that 39 suppliers could fail in the next 12 months, which would leave just 10 in the market.