UK energy supplier GB Energy Supply has ceased trading, blaming “swift and significant” increases in energy prices over recent months.
A statement issued on the company’s website on Saturday (26 November) confirmed that it had ceased trading, but reiterated that customers’ energy supply would not be disrupted.
“Due to swift and significant increases in energy prices over recent months and, as a small supplier our inability to forward buy energy to allow us to access the best possible wholesale prices, means that the position of the business has become untenable and as such we will now be entering a process overseen by Ofgem to move you to a new supplier,” the statement read.
GB Energy Supply’s last set of accounts made publicly available – published in April for the year ended 31 December 2015 – revealed that the company had made a loss of £630,000 from annual turnover of £22 million.
But despite the loss the supplier remained upbeat, insisting that its long-term outlook was positive. “The only foreseeable risk [to ongoing trading] is that of any regulatory changes that may have not been foreseen,” the company claimed.
Industry regulator Ofgem said it would be running a process to choose suppliers which would “best protect the interests” of GB Energy Supply customers.
It has in the meantime advised all consumer and business customers of GB Energy Supply to take a meter reading as soon as possible and wait until they are contacted by their new supplier.
Rachel Fletcher, senior partner for consumers and competition at Ofgem, said procedures have always been in place for this occurrence due to the competitiveness of the energy market.
“Ofgem are actively working with the industry to ensure your transition to a new supplier is as smooth as possible. While this process is underway our advice is not to do anything as you can continue to rely on your energy supply as normal,” she added.
GB Energy Supply’s collapse is not the first of this winter. Tempus Energy closed its supply division last month amidst price pressures and Brexit uncertainty.
The two closures also follow fears expressed by Co-Op Energy chief Ramsey Dunning, who at this year’s Clean Energy Live exhibition warned that wholesale energy price volatility could send a major supplier bankrupt this winter.
