Igloo Energy, Symbio and ENSTROGA exit the market
The energy supplier crisis continues after Igloo Energy, Symbio and ENSTROGA all announced that they have been forced to exit the market taking the total number of businesses lost this month alone to nine.
The chaos continues
These latest closures will impact 233,000 consumers putting more pressure on the energy regulators SoLR process and adding to concerns over soaring energy bills over the coming winter and 2022.
ENTROGA, Igloo Energy and Symbio Energy all announced they were ceasing to trade adding to the bloodbath in the energy retail market that has already claimed the likes of Avro Energy, Hub Energy and Utility Point.
ENSTROGA provided electricity and gas to 6,000 domestic customers while Igloo Energy provided for 179,000 domestic customers and Symbio 48,000 domestic customers with a small number of business customers. Altogether the suppliers provided for less than 1% of the UK’s domestic energy market.
There had been media speculation over Igloo's future in recent weeks with reports that the business had called in administrators.
Also read: Wholesale gas prices hit another record high adding to energy market concerns
Late payment and soaring wholesale prices
Igloo and Symbio showed signs of being in trouble a few weeks ago after Ofgem listed them as one of the five suppliers yet to pay their Renewables obligations.
Back on September 21st, Ofgem also issued a provisional order to Igloo Energy and Symbio Energy for not paying £316,582 and £146,238.66 respectively in Feed in Tariff payments, which was due on September 17th.
A combination of having to make those payments and the massive impact caused by soaring gas prices proved too much for them, forcing them to exit the energy supply market.
Earlier this year Symbio was fined by the regulator for failing to make late payments for the 2020 Renewables Obligation (RO) and Feed-in Tariff (FIT) schemes.
“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 customers of ENSTROGA, Igloo Energy and Symbio Energy that they do not need to worry. Under our safety net we’ll make sure your energy supplies continue. If you have credit on your ENSTROGA, Igloo Energy or Symbio Energy account the funds you have paid in are protected and you will not lose the money that is owed to you,” said Neil Lawrence, Director of Retail at Ofgem.
Also read: What has caused the Energy Market Crisis and what does it mean for the energy retail market?
What happens next?
In the event of an energy supplier exiting the market, Ofgem will take over the process and assign a gas or electricity supply licensee to take over responsibility for the business’ customers. This occurs once Ofgem revokes the supplier’s licence.
The customers of each failed supplier will now be put into the Supplier of Last Resort (SoLR) process.
When it comes to choosing a SoLR the authority will assess to see which bidding licensee has the capacity to support the additional customers without jeopardising the supply to its current customers. It must also be able to fulfil its other supplier obligations. If no suitable supplier wants to be a SoLR, Ofgem can use its powers to appoint a supplier without its consent.
The closures mark the ninth forced market exit the market in 2021 along with PfP Energy, MoneyPlus Energy, Green Network Energy, Simplicity Energy, Hub Energy, Avro Energy, Utility point, and Green.
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