ENERGY firms are rushing to reassure customers who fear their supplier could be the next to collapse as the industry reaches crisis point.
Bulb and Octopus are among the firms telling customers not to panic as a string of energy providers have collapsed.
Soaring gas prices have caused a number of suppliers to cease trading in recent weeks, and there are fears more could follow.
This week it was revealed that Bulb was seeking a cash injection to help shore up its finances.
Meanwhile an Octopus Energy spokesperson said: “Customers should not worry. The government’s energy price cap is doing its job and protecting them against price spikes.
Read our energy companies live blog for live updates on the crisis...
‘Well-oiled process’
An Octopus Energy spokesperson said: “Customers should not worry. The government’s energy price cap is doing its job and protecting them against price spikes.
“The industry, including Octopus Energy, has worked closely with Ofgem and the government in the past when supplier failures have happened and there is a well-oiled process in place.
“As one of the largest, best backed, best run companies in the sector, we will do all we can to support consumers, government and Ofgem as they work through this.”
‘No glee’
The founder of Octopus Energy, Greg Jackson, has also taken to social media to speak to customers in recent days.
He tweeted: “As a global, very well backed company we’re find but plenty more are not.
“There’s no glee in seeing other companies fail, which is why we’ve launched a special recruitment drive to help some of those losing their jobs in those companies.”
He also tweeted last night from an industry awards ceremony where Octopus took home the title of “Supplier of the Year” and an award for digital innovation.
What if my energy supplier goes bust?
If your supplier folds, your energy won’t be cut off, so there’s no need to panic.
Ofgem will arrange an interim supplier so you won’t have to go without.
Customers affected will be contacted by the new supplier, which will be chosen by Ofgem.
The new firm won’t have to honour the deal you were on with your previous provider, but any credit on your account will be protected.
It is recommended that you take a meter reading ready for when your new supplier contacts you.
Other charities also recommend keeping old energy bills and waiting until your new supplier is appointed before cancelling any direct debits.
Government Denies “Complacency” Over Energy Warnings
Ministers have denied being complacent over 18-month-old warnings about risks to the UK’s energy supply after 1.5 million people were left without a provider.
A host of energy companies have gone to the wall in recent weeks after the sector was hit by rocketing global wholesale gas prices.
With 800,000 consumers losing their suppliers on Wednesday alone, two energy companies have since looked to make it more difficult for new customers to sign up for their services as they attempt to survive the current turbulence.
Bulb scrapped its popular refer-a-friend scheme as it tries to raise new cash, while rival Ovo Energy changed its website by removing an invite to “get an energy quote in under two minutes”.
Government pressure (continued)
Scully insisted the only way to pay for the £6billion-a-year policy would be to heap even more taxes on working people.
He said: “The Chancellor will look at the whole aspect of public finances in the Budget and the Spending Review that is coming up.
“But if you were to reverse the Universal Credit as it is, you would have to put up income tax by the equivalent of a penny and 3p on fuel.
“What you don’t want to be doing, for the lowest paid in particular, is giving with one hand and taking and increasing taxes with the other.”
But he admitted: “We know this is going to be a tough winter.”
Under pressure
Some major firms have called for the Government to scrap green levies to ease pressure on the industry.
But others say the current situation is evidence that Britain needs to ramp up its sustainable energy capabilities and reduce its reliance on gas.
Heating or eating
The business minister faced a barrage of questions about the rising cost of living sparked by the energy crisis.
No 10 is coming under growing pressure to reverse the planned end to the £20 Universal Credit uplift introduced during the pandemic.
Critics have warned taking away the extra cash from the end of next month will face families having to choose between heating and eating.
What’s happening?
Natural gas prices are soaring across the world as economies finally being to fire up again after 18 months in hibernation during the pandemic.
That has put huge strain on energy providers with nine having now gone bust this year, affecting almost two million customers.
Suppliers are heaping pressure on Boris Johnson to temporarily scrap the price cap so that they can charge higher prices.
Price hike
Millions of Brits face a £400 hike in their gas and electricity bills this winter as the energy crisis deepens.
Families whose supplier goes bust face being bumped up onto much higher tariffs when they’re switched to a new provider.
Ministers have admitted it’s “not going to be possible” to “guarantee” that households will be able to keep the cheapest rates.
The energy price cap, which limits what firms can charge, has been set at £1,277 for the next six months.
But that’s at least £400 more than many families on the lowest tariffs.
‘Tough winter’
Paul Scully insisted the only way to pay for the £6billion-a-year policy would be to heap even more taxes on working people.
He said: “The Chancellor will look at the whole aspect of public finances in the Budget and the Spending Review that is coming up.
“But if you were to reverse the Universal Credit as it is, you would have to put up income tax by the equivalent of a penny and 3p on fuel.
“What you don’t want to be doing, for the lowest paid in particular, is giving with one hand and taking and increasing taxes with the other.”
But he admitted: “We know this is going to be a tough winter.”
‘Don’t worry’
In a blog post this week, Bulb said: “We want to be clear that Bulb members don’t need to worry about their supply of energy.
“We buy our energy in advance and this means we’re protected from the current wholesale costs that some smaller companies have struggled to manage.”
Some industry commentators have said it is only “less prudently run” or “less well-backed suppliers” who have collapsed as gas prices have risen.
Armed forces could be used
Soldiers could be called upon to drive tankers under emergency Government plans.
Ministers are said to be discussing placing servicemen on standby to drive petrol tankers amid reports at least 100 forecourts were suffering supply issues because of a driver shortage.
The Times has been told contingency plans, called Operation Escalin, would go into action if the situation significantly deteriorated.
The supply issues came as Hoyer, one of the UK’s largest fuel logistics companies, revealed it was "struggling to meet deliveries".
Price change
Tesco and BP close petrol stations
TESCO and BP have been forced to close petrol stations after running out of fuel.
Deliveries have been impacted by a shortage of HGV lorry drivers in the UK.
BP is reportedly preparing to restrict fuel deliveries to forecourts due to lorry driver shortages.
The oil and gas giant told the government last week that the situation is urgent and “very bad”, ITV News said.
Price hike
Millions of Brits face a £400 hike in their gas and electricity bills this winter as the energy crisis deepens.
Families whose supplier goes bust face being bumped up onto much higher tariffs when they’re switched to a new provider.
Ministers have admitted it’s “not going to be possible” to “guarantee” that households will be able to keep the cheapest rates.
The energy price cap, which limits what firms can charge, has been set at £1,277 for the next six months.
But that’s at least £400 more than many families on the lowest tariffs.
Heating or eating
The business minister faced a barrage of questions about the rising cost of living sparked by the energy crisis.
No 10 is coming under growing pressure to reverse the planned end to the £20 Universal Credit uplift introduced during the pandemic.
Critics have warned taking away the extra cash from the end of next month will face families having to choose between heating and eating.
But Mr Scully insisted the only way to pay for the £6billion-a-year policy would be to heap even more taxes on working people.
He said: "The Chancellor will look at the whole aspect of public finances in the Budget and the Spending Review that is coming up.
"But if you were to reverse the Universal Credit as it is, you would have to put up income tax by the equivalent of a penny and 3p on fuel.
"What you don't want to be doing, for the lowest paid in particular, is giving with one hand and taking and increasing taxes with the other."
But he admitted: "We know this is going to be a tough winter."
Bulb reassures customers
This week it was revealed that Bulb was seeking a cash injection to help shore up its finances.
The firm has been keen to reassure its customers that there is no need to panic. A Bulb spokesperson said: “From time to time we explore various opportunities to fund out business plans and further our mission to lower bills and lower CO2.
“Like everyone in the industry, we’re monitoring wholesale prices and their impact on our business.”
Millions of Brits face £400 energy bill hike
MILLIONS of Brits face a £400 hike in their gas and electricity bills this winter as the energy crisis deepens.
Families whose supplier goes bust face being bumped up onto much higher tariffs when they're switched to a new provider.
Ministers have admitted it's "not going to be possible" to "guarantee" that households will be able to keep the cheapest rates.
The energy price cap, which limits what firms can charge, has been set at £1,277 for the next six months.
But that's at least £400 more than many families on the lowest tariffs.
The cap, which is set by industry watchdog Ofgem, is going up by 12% from October.
‘Well-oiled process’
An Octopus Energy spokesperson said: “Customers should not worry. The government’s energy price cap is doing its job and protecting them against price spikes.
“The industry, including Octopus Energy, has worked closely with Ofgem and the government in the past when supplier failures have happened and there is a well-oiled process in place.
“As one of the largest, best backed, best run companies in the sector, we will do all we can to support consumers, government and Ofgem as they work through this.”
What if my energy supplier goes bust?
If your supplier folds, your energy won't be cut off, so there's no need to panic.
Ofgem will arrange an interim supplier so you won't have to go without.
Customers affected will be contacted by the new supplier, which will be chosen by Ofgem.
The new firm won't have to honour the deal you were on with your previous provider, but any credit on your account will be protected.
It is recommended that you take a meter reading ready for when your new supplier contacts you.
Other charities also recommend keeping old energy bills and waiting until your new supplier is appointed before cancelling any direct debits.
Tesco and BP close petrol stations
TESCO and BP have been forced to close petrol stations after running out of fuel.
Deliveries have been impacted by a shortage of HGV lorry drivers in the UK.
BP is reportedly preparing to restrict fuel deliveries to forecourts due to lorry driver shortages.
The oil and gas giant told the government last week that the situation is urgent and “very bad”, ITV News said.
What's happening?
Natural gas prices are soaring across the world as economies finally being to fire up again after 18 months in hibernation during the pandemic.
That has put huge strain on energy providers with nine having now gone bust this year, affecting almost two million customers.
Suppliers are heaping pressure on Boris Johnson to temporarily scrap the price cap so that they can charge higher prices.
Ministers beg for extra help
Ministers at the Department for Work and Pensions, fearing a backlash, have reportedly handed Chancellor Rishi Sunak a package of options.
This could reduce the impact of the impending cut with extra spending in other areas.
The options include giving extra cash to councils for emergency assistance funds.
Also being discussed is reducing the taper rate for Universal Credit from 63 to 60p.
That would mean workers keep more of what they earn.
'Tough winter'
Mr Scully insisted the only way to pay for the £6billion-a-year policy would be to heap even more taxes on working people.
He said: "The Chancellor will look at the whole aspect of public finances in the Budget and the Spending Review that is coming up.
"But if you were to reverse the Universal Credit as it is, you would have to put up income tax by the equivalent of a penny and 3p on fuel.
"What you don't want to be doing, for the lowest paid in particular, is giving with one hand and taking and increasing taxes with the other."
But he admitted: "We know this is going to be a tough winter."
What if my energy supplier goes bust?
If your supplier folds, your energy won’t be cut off, so there’s no need to panic.
Ofgem will arrange an interim supplier so you won’t have to go without.
Customers affected will be contacted by the new supplier, which will be chosen by Ofgem.
The new firm won’t have to honour the deal you were on with your previous provider, but any credit on your account will be protected.
It is recommended that you take a meter reading ready for when your new supplier contacts you.
Other charities also recommend keeping old energy bills and waiting until your new supplier is appointed before cancelling any direct debits.
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