UK energy firms MoneyPlus & PfP collapse as energy prices hit new peak

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A historic energy market surge in the UK has reportedly claimed the first of its casualties, with two energy suppliers reporting their collapse, leaving more than 100,000 consumers without a power supplier.

According to credible reports, MoneyPlus Energy and PfP Energy both went out of business and ceased trading on the 7th of Sept as the nation’s gas market hit a new record peak while prices across the electricity market soared to levels not witnessed since 2008.

A slew of other small suppliers are anticipated to fail this winter as they bear the hefty expenses of increasing market costs before the ceiling on basic energy rates is lifted in October.

According to commodities market analysts at ICIS, UK gas prices hit a new high of 136.68 pence per therm on the 7th. Meanwhile, for the first time in 13 years, electricity costs rose to £128.13 per megawatt-hour.

The unprecedented highs in electricity prices were boosted this week by increased demand for gas-fired power and a drop in wind speeds, which hampered renewable energy output.

Despite warm weather and relatively low electricity consumption, the electrical system operator was obliged to ramp up coal facilities to fulfill 5% of power demand in Scotland, Wales, and England. This makes the move the highest reliance on coal power since the unusually cold weather in March.

Because of the UK's rapidly growing energy markets, millions of UK families will face some of the highest energy bills in the previous decade this winter, and smaller energy suppliers risk going bankrupt as they fight to control costs.

MoneyPlus and PfP have respectively left about 9,000 and 80,000 residential customers without an energy supplier. Moreover, PfP also left 5,000 commercial customers without an energy supplier.

Now Ofgem, the industry regulator, will select a replacement provider for all customers impacted by the collapse in upcoming days while houses and businesses continue to get gas and electricity as usual.

Source credit: https://www.theguardian.com/business/2021/sep/08/two-uk-energy-suppliers-succumb-to-record-surge-in-prices