GB Energy Supply Stops Trading, Failure Blamed on Wholesale Price Upswing

November 26th, 2019
GB

One more fatality due to the rising wholesale energy prices is the closing down of GB Energy Supply. The company just stopped trading and blames the failure on the upswing in the wholesale energy prices. In a statement given by the Preston-based company, it has clearly stated that being a ‘small energy supplier’ had ‘become untenable’ while still assuring that the customers would not suffer and do not need to worry.

Energy regulator Ofgem assured the customers of GB Energy Supply that there would be a new supplier arranged for them and Ofgem would make sure that their outstanding balances would be protected in all conditions. It gave a piece of advice to the customers of the closing energy firm, that they should take their meter readings and wait until a new supplier contacts them.

GB Energy Supply published an open letter addressing its customers on its website wherein the managing director of the company Luke Watson said that “Due to swift and significant increases in energy prices over recent months and, as a small supplier our inability to forward buy energy to allow us to access the best possible wholesale prices, means that the position of the business has become untenable.”

Since the beginning of 2016, the price of crude oil has already doubled and is a little less than $50 per barrel. What’s more industry experts expect the energy prices to increase in 2017 due to the falling value of the pound and the increase in global energy prices. However, the sudden upswing in prices has taken its toll on the small energy suppliers like GB Energy Supply.

Customers are still safe!

Despite the shutting down of the company, its customers have nothing to lose. Ofgem is monitoring the entire matter and has ensured the safety of all customers’ accounts. Addressing the customers, Rachel Fletcher, Ofgem’s senior partner for consumers and competition, stated that: “If you are a customer of GB Energy Supply there is no need to worry as we will ensure your energy supplies are safe”.

“Ofgem is actively working with the industry to ensure your transition to a new supplier is as smooth as possible. While this process is under way our advice is not to do anything as you can continue to rely on your energy supply as normal,” she said.

Even Citizens Advice has given a statement assuring the customers of GB Energy Supply that eventually everything would be fine. Victoria MacGregor, director of energy, Citizens Advice stated that “This shouldn’t affect their gas and electricity supply so they’ll still be able to heat and light their home as normal. The energy regulator Ofgem is finding a new supplier for GB Energy Supply customers. The new supplier will contact customers in due course.”

Moreover, the customers would not be charged with any exit fees, however, it would be their responsibility to inform the new supplier that they want to be put on the cheapest tariff, said Ofgem.

Rob Salter-Church from Ofgem talked to BBC and stressed on the fact that even though the energy regulator does not have any supplier in mind to replace the GB Energy Supply, it has all the measures in place to protect the customers of the company.

Energy comparison expert FreePriceCompare foresees that the customers of GB Energy Supply should be watchful of the new supplier tariffs as they are likely to be more expensive than what they are paying currently and the new supplier may not entertain any cheap fixes.

The best way to get the cheapest deal would be to compare the all UK energy suppliers and switch if the new supplier does not offer them the cheapest tariff.

To reiterate, customers need not worry as things would be fine in a couple of days. For more information, customers of GB Energy Supply can go on the Ofgem website.

For more of such energy news and updates, you can check our website https://freepricecompare.com/home-energy/. We offer free, independent comparison of all UK energy suppliers and suggest the cheapest energy deals. If you want to know more about your energy savings, then feel free to call our team of friendly energy experts on 02034757476.

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