UK retail supplier GB Energy Supply has ceased trading “due to swift and significant increases in energy prices over recent months,” the company said in a note on its website.
“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” it said.
“During this process, all customer contracts will be honoured” it added.
Meanwhile, UK energy regulator Ofgem said it is taking steps towards appointing a new supplier to take over GB Energy Supply's 160,000 customers.
“In any competitive market companies will fail, this is why we have procedures in place to ensure customers’ energy supplies are always secure” said Rachel Fletcher Ofgem’s Senior Partner for Consumers and Competition.
BBC News reported many industry watchers expect the cost of heating for UK households "to rise next year owing to global prices and a weaker pound.”
