Goto Energy has become the latest in a series of gas and electricity suppliers to go bankrupt as the industry struggles to cope with record gas prices.
The collapse of the Kent-based renewable energy provider, established in 2019, brings the total number of failures this year to 16. Ofgem, the energy regulator, appoints a new supplier for its 22,000 customers.
Wholesale gas prices have risen 250% since January, in part due to low storage levels after a particularly cold winter in Europe last year, as well as increased energy demand from Asia and low wind speed affecting the production of renewable energy.
Since the start of August, the EU-wide energy squeeze has pushed 14 UK companies into bankruptcy, as they have been unable to withstand soaring gas prices, largely because ‘they could not pass all the increased costs on to their customers. .
Last week, renewable energy company Pure Planet, backed by BP, Daligas and specialist supplier Colorado Energy went bankrupt within 24 hours of each other, displacing 250,000 customers.
With a long, cold winter forecast, there are fears that increased demand for gas could worsen the crisis and keep prices at highs until 2023.
On its website, Goto Energy said: “Customers don’t have to worry – their supplies are secure and the funds domestic customers have deposited into their accounts will be protected if they are in credit. Ofgem’s advice is not to change suppliers, but to wait for them to appoint you a new supplier.
Ofgem has already done this for many customers of other bankrupt energy companies. As part of its supplier of last resort program, people will be transferred to a new supplier, without disrupting their gas or electricity supply.
Ofgem said customers should take meter readings so that they are ready when their new supplier contacts.
Justina Miltienyte, Energy Policy Expert at Uswitch, said: “It is important that Goto Energy customers do nothing until they are transferred to a new supplier, as trying to change suppliers could create administrative delays in returning your credit balance.
“After the move is complete, the best advice for most consumers is to always hold on. If you are using a standard variable rate, there is unlikely to be a better value to switch to due to the price cap protection and the current wholesale pricing situation.