More commercial energy providers exit the market as costs continue to rise.
Scottish Power has announced that it is exiting the UK industrial and commercial energy markets. Owned by Spanish energy firm Iberdrola, they announced last month that they will stop selling energy to British industrial and commercial (I&C) customers.
Why has Scottish Power stopped selling commercial energy products?
A Scottish Power spokesperson said: “The energy market is facing unprecedented challenges and we have taken the decision to exit (the) I&C market. There is no impact on existing business customers, we will continue to honour all contracts and no employees are affected by this decision.”
Energy suppliers have struggled in the face of soaring wholesale prices which recently hit record highs and have been exacerbated following Russia’s invasion of Ukraine.
Several other factors are also contributing to rising energy prices, including higher global demand and lower solar and wind energy output.
Which other firms have exited the commercial energy market?
Nearly 30 energy suppliers have exited the market since last September amid soaring wholesale costs.
Gazprom Marketing & Trading Retail, which provides around 20% of all energy to UK businesses, recently faced collapse as customers severed ties with the subsidiary of Russian state energy firm Gazprom.
The UK government was on standby to rescue Gazprom’s UK energy supply arm with a bailout estimated to total £4bn. However, the German government took control of the subsidiary earlier this month, saving the firm.
In a statement, GM&T said: “This completely removes with immediate effect any concerns about the viability and future of GM&T and its subsidiaries (including Gazprom Energy) since ultimate control is now held indirectly by the German state and not by PJSC Gazprom.
“Given the operational and financial independence of GM&T from PJSC Gazprom, there are no adverse financial or other implications from the actions of the German government.
“We will communicate further and as soon as possible on practical steps which will be taken on such matters as rebranding. In the meantime, we look forward to trading as normal once again with our counterparties, customers and stakeholders.”
What can businesses do if their energy supplier collapses?
Although Gazprom Energy has now been secured, there are fears that further energy companies could collapse in the coming months as wholesale energy prices continue to rise.
In our previous blog, we outlined what businesses should do if their commercial energy provider collapses.
Energy regulator Ofgem is responsible for finding you a new business energy provider if your supplier collapses. Your supply will be protected and you should be switched within a few days.
Ofgem and Citizens Advice both recommend taking a meter reading and downloading any bills, before waiting for your new supplier to get in touch.
Although it is usually encouraged to shop around, in the current market a better offer may not be available. In particular, people already on fixed business energy deals are advised to stay put before higher price caps are expected to come into force in October.
Therefore, instead of searching for a cheaper business energy deal, the Energy Saving Trust recommends simple changes to your firm’s usage and energy habits, which could help offset the current price rises.
How can Enexus Energy help?
Enexus Energy provides businesses with bespoke strategies to optimise the purchase and use of commercial energy.
We can help firms take proactive measures to lower their business energy outgoings, reduce consumption, and guide you to lasting savings on your energy costs.
To see how we can help, please get in touch:
Tel: 01253 966 960