GB Energy Supply Ceases Trading, After Wholesale Price Rises.

An energy firm with 160,000 customers has ceased trading, blaming recent rises in energy prices.

In a statement, GB Energy Supply said that as a “small supplier” business had “become untenable”. They assured people their supply would not be affected. GB Energy Supply ceases trading, after wholesale price rises.

Ofgem said it would appoint a new supplier and stressed that outstanding credit balances were protected.

The energy regulator advised customers to take a meter reading and wait until their new supplier contacted them.

GB Energy Supply Ceases Trading, After Wholesale Price Rises.

Managing director Luke Watson posted a letter to customers on the GB Energy Supply website. “There have been swift and significant increases in energy prices over recent months. As a small supplier our inability to forward buy energy to allow us to access the best possible wholesale prices. This means that the position of the business has become untenable.”

GB Energy Supply Ceases Trading, After Wholesale Price Rises.

 

BBC business correspondent Joe Lynam said that although crude oil prices had almost doubled since the start of the year. This was to just under $50 per barrel, that was still less than half the price seen in 2014.

It is expected the cost of heating our homes will rise next year owing to global prices and a weaker pound.

GB Energy Supply Ceases Trading, After Wholesale Price Rises.

Protections in place

Rachel Fletcher, Ofgem’s senior partner for consumers and competition. “If you are a customer of GB Energy Supply there is no need to worry as we will ensure your energy supplies are safe.

GB Energy Supply Ceases Trading, After Wholesale Price Rises.

“Ofgem are actively working with the industry to ensure your transition to a new supplier is as smooth as possible. While this process is under way, our advice is not to do anything. You can continue to rely on your energy supply as normal,” she said.

“Customers of the Preston-based company need not worry”. Victoria MacGregor Director of Energy, of the Citizens Advice Bureau, has assured customers.

“This shouldn’t affect their gas and electricity supply so they’ll still be able to heat and light their home as normal,” 

“The energy regulator Ofgem is finding a new supplier for GB Energy Supply customers. The new supplier will contact customers in due course.”

No exit fees will be charged as a result of the closure. Ofgem said it would be down to customers to tell their new supplier they wanted to be put on the cheapest deal. For those looking to get the best value, check this link out

Speaking to BBC Breakfast, Rob Salter-Church from Ofgem stressed that there was “no need to worry”. The regulator was not aware of any other suppliers in the same position as GB Energy.

There is protection in place for when these things happen, so customers can be reassured they are protected.

“Be prepared that in most cases the new tariff will be more expensive than what you are on now. Cheap fixes will probably not be honoured.” Moneysavingexpert.com founder Martin Lewis warned. “Do a comparison and switch once the transfer happens if the new tariff is not cheap.”    Check out this British PLC for great value on all your utilities.

Customers can find more information on the Ofgem website.

 

 
GB Energy Supply Ceases Trading, After Wholesale Price Rises.
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