November 27, 2021

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Energy chief offers to help 20 energy companies on brink of oblivion

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Ecotricity’s founder, Dale Vince, wrote to the energy firms after the forced market exit of CNG, who they all use to ship their gas. In a letter to GoodEnergy, Mr Vince said: “I understand that Good Energy are affected by the sudden market exit of CNG, who provide gas services to some 20 smaller energy companies.

“You need a gas shipper and I’m writing today to offer to provide this service for you.”

As a result of CNG’s forced market exit, there were fears of a domino effect, with its exit impacting upon the smaller companies which rely on them for gas.

CNG, a gas wholesale company, said that all deliveries to the 18 energy companies it supplied would be stopped.

CNG told these companies that they would need to buy gas from elsewhere, which is likely to result in a steep rise in costs for retail suppliers and hundreds of small businesses.



Dale Vince


© Twitter/DaleVince
Dale Vince



Power Stations


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Power Stations

The company was hit by the collapse of some of its major customers, including Avro Energy, who CNG said had not paid them for gas supplied to households.

This comes as more than 10 energy suppliers across the UK have gone bust since the start of September, as companies struggle with rising wholesale prices.

British energy prices have risen to record levels this month, primarily due to soaring global gas prices, partly as a result of the post-pandemic recovery, low gas inventories, and limited gas supplies from Russia.

Many British energy suppliers have struggled with the soaring prices, while the amount they are able to charge customers is capped by Ofgem.

READ MORE: Price crisis: British steel industry fumes at Sunak



Petrol


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Petrol



BP


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BP

Energy supplier GOTO Energy Ltd today became the 12th UK energy firm to go bust.

GOTO Energy supplied gas and electricity to around 22,000 customers in the UK.

While Britain’s gas and electricity price cap for households did increase by 12 percent to 13 percent from the start of October, wholesale prices have risen significantly since that announcement was made in August.

Britain’s Energy Minister warned earlier in the month that more energy companies could go bust amid record prices, but ruled out offering any support to struggling firms.

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Which energy firms have gone bust?


© Express
Which energy firms have gone bust?

Business Secretary Kwasi Kwarteng told the Energy UK conference: “We may well see companies going out of the market.

“Government will not bail out failed companies, there cannot be a reward for irresponsible management.”

Earlier this month, Ecotricity attempted a hostile takeover of GoodEnergy which failed as they didn’t secure the minimum required level of acceptances from shareholders.

Mr Vince addressed this in his letter, saying: “I do so as the largest shareholder in the company and despite the hostility we have been shown, throughout our shareholding and more recently during our offer to buy the company. We bought our shares over five years ago with the intention of assisting Good Energy and ensuring its continued operation and success in the green space.



Kwasi Kwarteng


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Kwasi Kwarteng

“It is in the interests of all shareholders to fix this problem as quickly as possible.

“You will no doubt be pursuing other options and we will no doubt be your last choice.

“But that is a choice you now have and I hope it assists you to know this.”

Mr Vince tweeted: “I’ve just written to @GoodEnergy to offer our help with their gas shipper problem. Their current provider is making a forced market exit – it’s a problem affecting nearly 20 smaller companies. We’re willing and able to help – if they need it.”

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