IGLOO Energy could be the latest casualty of the current energy crisis as the company is “on the brink of going bust”.
Sky News has reported that the energy supplier is facing a collapse that would see 100,000 customers left in the dark.
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Surging gas prices have dealt a devastating blow to the energy industry as a number of other suppliers have already folded in the past week.
We recently reported how Bulb could potentially be the next in line of energy companies that have already gone bust amid the rocketing gas prices.
Meanwhile Utility Point and People’s Energy have already met the failed fate.
Sky reports that Igloo is in talks with Alvarez & Marsal about a potential insolvency process.
It’s the same firm lined up to advise Green which is another small energy supplier rumoured to be going bust.
But, an insolvency process could also be a way to save the business, so Igloo’s fate is still unknown.
The price hikes are caused by increased post-pandemic demand, leaving wholesale costs to have risen by 250% since January.
The crisis has already forced carbon dioxide (CO2) processing plants to shut and by affecting the CO2 supply, supermarkets meat and frozen food could be hit as well.
But more prominently it’s meant suppliers are forking out for the hiked costs as the government’s energy price cap limits what they can pass on to customers.
But we have previously explained how the cap is set to rise by £139 a year, from £1,138 to £1,277 in just over a week’s time.
Consumer energy bills could also rise even further as the government hasn’t ruled out raising the price cap beyond this too.
Igloo along with other suppliers has also been ordered by the industry regulator, Ofgem to pay cash into a government renewable energy scheme or risk losing its licences, which is what’s lead to the bailout requests.
But energy firms in the “the big six” like Eon have called on ministers to scrap green levies as a way to ease the pressure on the industry.
Igloo has stopped taking on new customers for the time being but a notice on its website reads: “We can reassure you that your energy supply is secure and all credit balances are protected.”
There are now roughly 40 suppliers in the UK market, sharply down from a peak of 70 in 2018.
The Sun has approached Igloo for comment.
What happens if my energy provider goes bust?
If Igloo does happen to fold in the near future, your energy won’t be cut off, and Ofgem will arrange an interim supplier so you won’t have to go without.
Customers affected will be contacted by the new supplier, which will be chosen by Ofgem.
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.
In the meantime, you should not switch to another energy supplier until a new one has been appointed, which can take several weeks.
Your electricity and gas supply will not be cut off while Ofgem finds you a new supplier.
It is recommended that you take a meter reading ready for when your new supplier contacts you though.
Charities also recommend keeping old energy bills and waiting until your new supplier is appointed before cancelling any direct debits.
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