Ten Energy Suppliers are at risk as the renewables obligation deadline passes and Elexon blocks new customers

Three energy suppliers that have defaulted out of the Balancing and Settlement Code (BSC) have been blocked from taking on any more customers by Elexon. Meanwhile, eight suppliers are at risk of losing their supply licences for failing to pay their Renewables Obligations.

What’s happened?

Deep financial difficulties

When a supplier defaults out of the BSC it is often a sign that the company is suffering severe financial difficulties and suggests that those suppliers are not long for this world. If the three suppliers blocked by Elexon go under they will be just the latest out of the 22 to have done so in 2021.

Igloo Energy, GOTO Energy, Colorado Energy, Enstroga, Avro Energy, Utility Point, People’s Energy, PfP Energy and MoneyPlus all defaulted out of the BSC before their market exits.

A collapse of Simply Your Energy would result in an extra 58,000 domestic consumers being placed into the SoLR process and a failure of Maxen Power would see 10,000 business customers lose their supplier.

Also read: Energy Suppliers blame Ofgem for the crisis in the energy market

Hope of a fall in gas prices?

Wholesale gas prices fell by a fifth over the weekend after Russia's state-run energy company Gazprom started pumping more supplies to EU stores.

Russian President Vladimir Putin instructed Gazprom to start pumping gas into the company's storage facilities in Austria and Germany by November 8 ‑ after it has filled domestic depots.

Mr Putin said: "This will make it possible to fulfil our contractual commitments in a reliable, stable and consistent manner and to supply our European partners with gas in the autumn and winter."

Following his comments, gas prices fell across Europe with UK prices plunging by a fifth.

If the coming winter proves to be a mild one as some meteorologists are forecasting then we could see gas prices fall further and perhaps alleviate some of the pressure on those energy suppliers still clinging onto life in the market.

Also read: Energy Rationing Fears grow due to low UK gas reserves and Russian opportunism

Renewables Obligation payments due

Seven energy suppliers are at risk of having their supply licences removed by Ofgem after failing to pay their renewables obligations worth a combined total of £17.9 million.

Ampower, Whoop Energy, Delta Gas and Power, Entice Energy, MA Energy, Neon Reef and Together Energy have all been sent provisional orders from Ofgem over late payment.

If the companies fail to pay or provide sufficient evidence that they can pay they will be at risk of having their electricity and gas supply licences removed and will join the other suppliers to have exited the market this year.


Only suppliers who do not source enough of their electricity from renewable sources, or do not buy enough so-called Renewable Energy Guarantees of Origin certificates, have to pay into the fund.

Also read: Ofgem Renewable Obligation Certificates (ROC)

Further Reading

Ofgem issues a warning to energy suppliers over the use of threatening language towards customers

Energy Price Forecast 2022: A ravaged energy retail sector, soaring wholesale gas prices, Covid-19 and much more

What are the risks for energy suppliers taking on customers via SoLR?

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