GB Energy Supply has ceased trading after wholesale energy prices moved upwards, creating a cash-flow crisis where the Lancashire-based company was no longer able to procure future supplies.
The regulator OFGEM is now seeking to secure and alternative supplier for the company’s 160,000 customers.
Luke Watson, Managing Director, GB Energy Supply, said: “Due to swift and significant increases in energy prices over recent months and, as a small supplier our inability to forward buy energy to allow us to access the best possible wholesale prices, means that the position of the business has become untenable.”
Rachel Fletcher OFGEM Senior Partner for Consumers and Competition said: “In any competitive market, companies will fail. This is why we have procedures in place to ensure customers’ energy supplies are always secure.
“If you are a customer of GB Energy Supply there is no need to worry as we will ensure your energy supplies are safe.
“We are actively working with the industry to ensure your transition to a new supplier is as smooth as possible. While this process is underway our advice is not to do anything as you can continue to rely on your energy supply as normal.”
“We will work to appoint a new supplier as soon as possible and they will be in touch with you.”