UK energy regulator predicts supplier failures with standby advisers – Sky News

September 30 (Reuters) – UK energy regulator Ofgem has hired insolvency advisers from pending consultancy Teneo to help with a possible failure of a major energy supplier that cannot be resolved through litigation existing, Sky News reported Thursday.

Several UK suppliers have gone out of business in recent weeks as wholesale energy prices hit record highs and tariff caps in the country have created a crisis for small businesses struggling to cope with rising costs. Read more

Enstroga, Igloo Energy and Symbio Energy filed for bankruptcy on Wednesday, bringing the number of collapsed suppliers to nine. Read more

“Ofgem and (the) government are preparing for a wide range of scenarios and have long-standing contingency plans in place for any situation as needed. These processes include speaking to a range of organizations,” the watchdog said in a statement.

Ofgem has retained Teneo to act as special administrator if customers of a bankrupt energy company cannot be transferred to a rival through its supplier of last resort system, according to Sky report noted, although such a need has not yet materialized.

Last week Ofgem ordered Octopus Energy to supply electricity to approximately 580,000 domestic customers of Avro Energy. Read more

Report by Pushkala Aripaka in Bangalore; Editing by Krishna Chandra Eluri

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