Energy companies Entice and Orbit go bankrupt, affecting 70,000 customers

It has been a brutal year for the industry with big changes in the global energy market (Photo: PA)

Two other energy companies went bankrupt on another bleak day for the industry.

About 70,000 households were left without a supplier because of the closures.

Fluctuations in the global wholesale gas price have put enormous pressure on companies in recent months.

Entice Energy, which had 5,400 households on its books, and Orbit Energy, which supplies 65,000 customers, are both shutting down.

The industry watchdog, Ofgem, has ensured that all customers will find a new supplier and can continue to use their appliances and central heating normally in the meantime.

However, there is no guarantee that their bill will not increase once they transfer to a new business.

Two dozen energy companies fell into the wall in less than three months, reaching around four million customers.

The biggest failure to date has been Bulb, once an energy achievement that fell under administration on Wednesday.

Companies operating on low margins have been plunged into financial difficulties due to steep cost increases (Photo: PA)

While the customers of the other 23 failing energy companies will be transferred to a new supplier by Ofgem, Bulb had too many customers for this to be possible.

Instead, it will continue to trade until it can be sold or its customers have slowly moved elsewhere.

A pot of £ 1.7bn has been set aside by the government to support the company’s operations in the meantime, a burden that could end up on household energy bills.

After the failures of Orbit and Entice, Ofgem’s retail director, Neil Lawrence, said: “Ofgem’s number one priority is to protect customers.

“We know these are worrying times for many people and the news of a supplier going out of business can be disturbing.

“I want to reassure affected customers that they don’t have to worry; through our safety net, we will ensure that your energy supply continues. ‘

Customers should take a meter reading now when their new supplier contacts.

Gillian Cooper, head of energy policy at Citizens Advice, said: “The increases in global gas prices that we have seen this year have been significant, but should not have led to the collapse of 25 companies.

“As suppliers continue to fall like dominoes, it is clear that the market is not performing as it should and Ofgem needs to answer some serious questions about how this was allowed to happen.”

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