Orbit and Intes become latest UK energy supplier to go bankrupt | energy industry

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Two other UK energy suppliers have gone bankrupt, following the collapse of Bulb Energy earlier this week, bringing the number of households affected by the resource failure to nearly 4 million since August.

The energy regulator confirmed that Orbit Energy, which supplies 65,000 homes, had closed along with Entice Energy, which has 5,400 customers.

It brings the total number of failed suppliers to 24 in less than 12 weeks, as it hit record energy market prices there amid the global gas supply crisis.

Orbit blamed its collapse on the government’s energy price cap, which is designed to protect about 15 million customers on standard variable tariffs from unfair energy bills.

List of UK energy suppliers that went bankrupt in 2021

In a statement on its website, Orbit said it is a “well-managed energy supplier” and has “always taken a prudent approach” to purchasing energy from wholesale energy markets, so it can offer the “best possible price.”

“Unfortunately, the UK government and our regulator, Ofgem, expect us to sell energy well below purchase cost – making operation unsustainable,” she said.

Ofgem will select a new power supplier to deal with Orbit and Entice customers in the coming days. The power regulator told customers that under their “safety net” procedures, they would continue to be supplied with power as normal and any account balance would be protected.

The latest collapses in the wake of the collapse of Bulb Energy, which on Monday became the UK’s largest energy supplier is collapsing. On Thursday morning, Bulb was handed over to a special official who will continue to supply his 1.7 million customers through the winter.

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Ofgem can usually find a new company to take care of clients that are left behind in a matter of days. But Bulb’s customer base size means it will likely face a complex process that takes months to determine the fate of its customers.

The Treasury has set aside up to £1.7 billion to pay for Bulb until the special management process is over.

Ofgem Orbit and Entice warned earlier this month that they could lose their suppliers’ licenses if they fail to pay money collected from their customers’ energy bills, which are earmarked to support small renewable energy schemes such as rooftop solar installations.

Orbit owes £451,296 taken from its customers’ energy bills to support the government’s feed-in tariff scheme, while Entice owes the regulator £28,353 to help support small-scale renewables.

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