Saturday, October 16, 2021
Energy Firms' Collapse to Affect 1.5m UK Consumers
9/23/2021 1:52:32 PM

More than 1.5 million households in the United Kingdom were hit by energy firms collapsing under soaring gas prices as two more companies closed down on Sep. 22.

A total of 830,000 customers will be transferred to new energy suppliers after Green Supplier and Avro Energy have dropped out of the gas market.

The two companies brought the number of closing gas firms to seven, all of which were affected by the U.K.'s energy crisis.

Wholesale gas prices have surged by 250 percent since January, rising 70 percent from August to September.

The surge in U.K. and European gas prices were driven by a market restricted by higher global demand and lower solar and wind energy output, along with other factors such as the prolonged winter of 2020-2021 that ramped demand for heating and depleted stocks.

Carbon taxes introduced by two separate Emissions Trading Scheme by the EU and the U.K. also significantly pushed energy prices up, according to Oil & Gas U.K.

British Prime Minister Boris Johnson said that the crisis "is really a function of the world economy waking up after COVID."

"This will get better as the market starts to sort itself out, as the world economy gets back on its feet," Johnson reassured amid fears that the crisis might create widespread food shortages.

Courtesy: Fourth Estate

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