Gas supply to 6 million homes could be cut off as seven UK companies go bankrupt

- 50% increase in wholesale gas prices in the last one year

- Gas prices to rise by 70 per cent in August alone, fears of gas companies falling from 49 to 10

LONDON: A sharp rise in gas prices has put seven UK gas firms in bankruptcy, threatening the gas supply to 3 million households. One in four gas consumers in the UK uses gas from a company that has not hedged wholesale prices against market fluctuations. In the UK, wholesale gas prices have risen by 20 per cent so far this year, up from 20 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 1.5 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 nine 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 6 gas companies. The price ceiling could be raised to ૧ 1,200 per family to raise money for energy companies. This will allow companies to add up to પા 500 a year to their gas and electricity bills.

Suppliers are now offering customers a fixed rate of ૯ 1,200 a year. The price is ઉન્ડ 8, up from ૨૭૭ 1.2 on October 1. The ceiling will be raised to ૪૫૫ 1.2 next April. Thus, this ritual is twice the price of 2050 pounds.