ENERGY firms Avro and Green have ceased trading, leaving 853,000 customers without a supplier.
Both companies confirmed this afternoon that they are closing, as they became the latest casualties of the UK energy crisis.
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Avro Energy supplies gas and electricity to around 580,000 domestic customers.
Around 255,000 households use Green as their electricity and gas supplier, as well as some non-domestic customers.
Those consumers will be contacted by Ofgem, the energy industry’s regulator, which will switch them to a new supplier.
Justina Miltienyte, energy policy expert at Uswitch.com, said: “This is a double blow for the energy industry and will cause further worry for consumers.
“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.
“Affected customers will be moved onto new suppliers appointed by Ofgem, but for now they should sit tight and wait until their account is transferred to the new provider before trying to switch.”
Energy companies are struggling as wholesale gas prices have surged.
We reported today that Igloo Energy is also on the brink of collapse due to the crisis, which would leave 100,000 customers without a supplier.
Bulb, the UK’s sixth biggest energy firm, has confirmed that it is scrambling to find new funding.
Nine firms have folded this year, including Utility Point and People’s Energy.
Green’s chief executive Peter McGirr had previously warned that the company would collapse within three months unless it received state support.
Business secretary Kwasi Kwarteng yesterday said ministers are braced for “more failures” than in a usual year due to sky-rocketing prices of natural gas.
But he insisted Boris Johnson won’t step in to bail out “badly run” enterprises as happened during the 2008 banking crisis.
What happens if your energy supplier goes bust?
Don’t panic if your supplier goes out of business, as your energy won’t be cut off.
Ofgem, the industry regulator, will arrange for another company to take over.
You will be contacted by the new supplier directly, and shouldn’t switch until you have heard from them.
With the recent fall of People’s Energy, for example, Ofgem has appointed British Gas to take on supplying the provider’s over 350,000 customers.
The new firm won’t have to honour the deal you were on with your previous provider, but any credit on your account will be protected.
Experts like Martin Lewis’ MoneySavingExpert are advising customers not to rush to switch though, and instead “simply sit tight and wait to be contacted by a new supplier”.
But it is recommended that you take a meter reading ready for when your new supplier contacts you.
Other charities also recommend keeping old energy bills and waiting until your new supplier is appointed before cancelling any direct debits.
Citizens Advice has called for the government to guarantee that no one will lose access to the Warm Home Discount when they move supplier.
The charity also said customers in debt to failed suppliers should continue to have access to affordable repayment plans.
Kwasi Kwarteng states 5-8 energy companies could go bust this winter
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