An energy supplier previously owned by Bristol City Council and its parent company have become the latest to collapse as soaring wholesale gas prices continue to impact the sector.
Bristol Energy and its Scottish holding firm Together Energy Retail confirmed on Tuesday (January 18) they had ceased trading.
A statement on both businesses websites thanked the group’s 176,000 household customers, saying: “Despite press reports, we did buy enough gas and electricity for your needs, but the sustained increase in wholesale prices and the securities required to continue to forward purchase the energy, have meant that it is untenable for us to continue.”
The statement confirmed customers and their balances would be protected and moved on to a new supplier chosen by regulator Ofgem.
Bristol Energy and Together Energy said they expected Ofgem to confirm the new supplier by Monday (January 24). Ofgem advised customers not to switch suppliers and wait for it to appoint a new one for them.
An Ofgem statement said: "Under Ofgem’s safety net, customers’ energy supply will continue and funds that domestic customers have paid into their accounts will be protected, where they are in credit.
"Domestic customers will also be protected by the energy price cap when being switched to a new supplier. Customers of Together Energy Retail will be contacted by their new supplier, which will be chosen by Ofgem.
"In recent weeks there has been an unprecedented increase in global gas prices which is putting financial pressure on suppliers. Ofgem is working closely with government and industry to make sure customers continue to be protected this winter."
Neil Lawrence, director of retail at Ofgem, said the regulator's "number one priority" was to protect customers.
He said: "We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.
"I want to reassure affected customers that they do not need to worry, under our safety net we’ll make sure your energy supplies continue.
"Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal.
"We will update you when we have chosen a new supplier, who will then get in touch about your tariff. Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available."
Established in 2015 by Bristol City Council, the local authority sold off Bristol Energy after it posted total official losses of £32.5m over five years and soaked up £35m of council tax payers’ money.
Bristol Energy’s residential meter points, brand and systems were acquired by Together Energy in 2020 for £14m, with UK utility provider Yü Group buying its business customer portfolio for £1.34m.
More than 20 suppliers have failed since the start of September, including South West firms Neon Reef and Pure Planet, as rising gas prices weigh further on smaller firms.
Consumers are protected from sudden price hikes through the government’s energy price cap. This has put pressure on smaller energy suppliers which are unable to pass on the increases in wholesale gas prices to their customers.
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