Rolling coverage of the latest economic and financial news
- Latest: 800,000+ customers affected as Avro and Green cease trading
- Energy supplier Green becomes latest casualty of crisis
- Kwarteng ‘looking at all options’ over windfall tax
- Kwarteng says price cap ‘here to stay’
- Ofgem: More energy firms expected to fail
- CO2 prices to jump, government warns
- Full story: Bailout of US CO2 supplier will cost UK taxpayers ‘millions’
Labour MP Alan Whitehead, Shadow Minister for Energy and the Green New Deal, tweets that there is a ‘total failure in the energy market’:
Avro Energy and Green, 2 medium sized companies, have today ceased trading, highlighting the latest costs of this energy crisis. Let there be no mistake, this is cause by a total failure in the energy market, leaving almost a million customers without a supplier in a single day. https://t.co/RvVjUx14MX
It seems clear to me that the present Supplier Of Last Resort arrangements are unlikely to fix this. I ask that the government urgently lays out its plans for what alternative arrangements they are making to ensure that these customers are protected, both short and long term.
Whether these alternative arrangements are through special administration, or an energy ‘bad bank’, the Government now has no choice but to come clean with businesses and the public and safeguard our energy system to ensure customers are safe in the future.
The collapse of both Avro and Green is a ‘double blow’ to the energy sector, says Justina Miltienyte, energy policy expert at Uswitch.com.
It will also cause further worry to consumers, she fears, after a series of supplier collapses already this year.
“Avro and Green’s simultaneous exits from the market come after People’s Energy and Utility Point ceased trading last week. Nine energy suppliers have been forced out this year so far and it’s likely that more may follow.
“Soaring wholesale prices are making conditions difficult for all suppliers, but challenger brands in particular are struggling to make ends meet.
“Once the new supplier is appointed, they will be in touch to provide more information.”
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