CNG Energy becomes the sixth supplier to exit the market this week and more are expected to follow
The crisis in the energy retail sector cannot be described as anything offer than a total bloodbath as CNG Energy became the sixth supplier forced to exit the market this week. So far, the total number of suppliers forced to close in 2021 is twenty two.
High gas prices continue to impact
Soaring gas prices have decimated the industry and the worst has still to come due to uncertainty over whether Bulb energy will collapse and leave over a million consumers without a supplier.
Such a huge market exit would likely overwhelm the already struggling SoLR process as surviving energy suppliers will be unable to absorb so many customers at once.
CNG announced last month that it was on the verge of collapse due to the soaring gas prices but yesterday it officially shut its doors for good.
All 145 of the company’s employees have now been made unemployed highlighting the devastating impact on industry workers livelihoods. Little attention is being paid to the fallout on those working in the industry, instead, the media are too busy playing the blame game and focusing on consumers.
In a statement on social media, CNG Energy said: “We’re very sad to say that CNG Energy Ltd is ceasing to trade. CNG customers’ supply won’t be interrupted and Ofgem is moving you to a new supplier soon. This will happen automatically. The global energy crisis and extremely high wholesale energy costs have affected many suppliers already and unfortunately, CNG is the next casualty. We have tried and exhausted all options to remain in business.”
Ofgem’s generic response
Yet again Ofgem’s director of retail will be happy he has a statement that he can just copy and paste as once more he released the exact same one, he’s used for every single failed supplier.
“Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling. I want to reassure affected customers that they do not need to worry under our safety net we’ll make sure your energy supplies continue.
Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime.”
The energy regulator has come under intense criticism from the industry that it regulates, and its price cap has been blamed for making a bad situation far worse.
Whilst busy pontificating about green energy and renewables technology at the (no doubt all expenses paid) COP26 conference in Glasgow the regulator has done little to help energy suppliers in this current crisis.
Schmoozing with the worlds wealthiest and ‘elites’ at the Cop 26 is all well and good but doesn’t exactly address the crisis the industry is facing right now.
The government’s attitude seems to be one of either indifference or of completely burying its head in the sand as to the reality of the situation.
Also read:
Energy Suppliers blame Ofgem for the crisis in the energy market
Further Reading
Bluegreen Energy Services Limited exits the market
Ofgem issues a warning to energy suppliers over the use of threatening language towards customers
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For more information on how to start and manage an energy company, get in touch with Dyball Associates today.
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