Gas supplies to 6 million homes could be cut off as seven UK firms go bankrupt

Fear that the number of gas companies will drop from 49 to 10

LONDON: A sharp rise in gas prices has put seven UK gas firms in a state of bankruptcy, threatening the gas supply to 3 million homes. One in four gas consumers in the UK uses gas from a company that has not hedged wholesale prices against market fluctuations. Wholesale gas prices in the UK have risen 250 per cent so far this year, up from 70 per cent in August alone. Thus companies that are not protected against price increases will buy less gas than they are going to sell to consumers. This will directly hit consumers

One such company with about 1.7 million customers is currently seeking private financing. However, he has some leeway as he has already secured a contract against rising gas prices. A company called Iglo Energy has hired Alvarez & Marcel for possible bankruptcy.

About seven companies have stopped trading. The regulator of JEM has warned that seven firms have stopped trading this year. This is likely to leave thousands of consumers without gas supply. Due to the bankruptcy of one gas company after another, the number of gas companies is expected to fall from 49 to ten by next year.

Jonathan Briarley, an MP from the Business, Energy and Industrial Strategy Select Committee, declined to comment, but added that "we think a large number of consumers could be affected." He warned that the crisis was not temporary.

The business secretary also denied claims that only ten gas companies would survive by the end of the year. There are currently 49 gas companies. The price ceiling could be raised to 1, 1,500 per family to raise money for energy companies. This will allow companies to add 600 600 a year to their gas and electricity bills.

Suppliers are now offering customers a fixed rate of 1, 1,900 a year. The price is 4 624 higher than the પહેલી 1,277 October high. The ceiling is set to rise to 45 1,455 next April. This is twice the price of 50 850 in 2020.