Bluegreen Energy Services collapses as energy supply market volatility continues into November

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High prices are expected to continue in the UK as winter approaches as demand increases. Image: Getty.

Bluegreen Energy Services became the first supplier to go bankrupt in November, leaving around 5,900 domestic customers and a small number of non-domestic customers to be recovered through the supplier of last resort (SoLR) mechanism.

The company is part of the larger bluegreen energy group, which was founded in 2011 in the United States. It then expanded to Japan in 2016 before entering the European market in 2019.

In a statement, the company said: “Due to the energy crisis in the UK we find ourselves in an unsustainable situation and unfortunately Bluegreen Energy Services Limited is forced to make the difficult decision to go out of business.”

Bluegreen Energy Services is the latest in a series of companies to collapse due to high wholesale energy prices. The third quarter of 2021 saw day-ahead prices increase by 69% compared to the previous quarter, averaging £ 126.14 / MWh.

The high prices were largely due to a global gas shortage, with a number of blackouts and low winds in September putting particular pressure on the UK grid.

Thus, four suppliers – Goto Energy, Pure Planet, Colorado Energy and Daligas – all ceased operations in October, and eleven suppliers – ENSTROGA, Igloo Energy, Symbio Energy, Hub Energy, Green Network Energy, Simplicity Energy, Avro Energy, Utility Point, People’s Energy, PfP Energy and MoneyPlus Energy – closed in September.

With high prices expected to continue as the weather continues to cool, more vendors are expected to go bankrupt in the coming months. Simply Your Energy, Maxen Power Supply and Omni Energy are to be excluded from the Balancing and Settlement Code, a step that has preceded the collapse of a number of companies in recent months.

While Ampower and Whoop Energy received final orders from Ofgem, for failing to make payments under the renewable energy bond. This follows a consultation launched against companies with Goto Energy, Home Energy Trading and Colorado Energy, two of which have since closed.

Ofgem said it would consult on the price cap methodology in response to the multitude of collapses.


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