Five more suppliers have defaulted out of Elexon’s Balancing and Settlement Code (BSC), as energy suppliers continue to struggle amid market pressures.
Neon Reef Limited, Orbit Energy Limited, Zebra Power Limited, BlueGreen Energy Services Limited and CNG Electricity Limited. For these final three companies, the move follows them shuttering and their customers are being placed with a Supplier of Last Resort (SoLR).
BlueGreen Energy Services was the first supplier to collapse in November, leaving around 5,900 domestic customers and a small number of non-domestic customers.
CNG collapsed this week (3 November) after being in the sector for 27 years, with the company supplying around 41,000 non-domestic customers.
Zebra Power also collapsed this week (4 November) along with Omni Energy, MA Energy, and Ampoweruk, leaving 14,800 domestic customers.
For both Neon Reef and Orbit Energy, they have been removed from the BSC for failing to sufficiently reduce their Credit Cover Percentage. They follow a number of companies who have defaulted out of the system – which means that they cannot register new customers – with the majority failing shortly after.
This includes Simply Your Energy, Maxen Power Supply and Omni Energy, which were removed from the BSC last week (29 October).
High power prices in recent months have led to a cavalcade of energy supplier collapses. In particular, a global gas shortage – felt acutely in Britain as in 2020 37% of electricity came from gas – saw day-ahead wholesale prices in Q3 averaging at £126.14/MWh, up 69% from Q2 to hit a record high.
Over the past couple of months, these conditions have contributed to the collapse of Goto Energy, Pure Planet, Colorado Energy, Daligas, ENSTROGA, Igloo Energy, Symbio Energy, Avro Energy, Green Supplier Limited, People’s Energy, Utility Point, PfP Energy and MoneyPlus Energy.
According to Cornwall Insight, the number of domestic energy suppliers has fallen by over half from 47 to 25 since the start of 2021.
More suppliers are expected to collapse in coming months, as gas prices stay high and the UK moves into winter.