Yahoo Finance Zog Energy becomes latest UK supplier to go bust
Zog Energy has become the latest casualty of the UK energy market crisis, as smaller suppliers continue to buckle under mounting wholesale costs.
The company said on its website that it is ceasing to trade. It advised its 11,700 customers that their gas and electricity supplies would not be affected.
This is the 25th firm regulator Ofgem has had to manage in the last three months.
Reasons behind the dramatic increase in power prices include low gas reserves, strong commodity and carbon prices, heightened global demand and low wind output.
The supplier's customers will be appointed a new company under the "supplier of last resort" lifeboat. This will place them on tariffs under the government's price cap.
“Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling," said Ofgem director of retail Neil Lawrence.
“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."
📣Energy supplier @ZogEnergy has announced it is ceasing to trade.
Customers will be contacted by their new supplier, who Ofgem will now choose.
Learn more➡️https://t.co/GEqimgZUiF
You can also contact @CitizensAdvice or @advicedotscot pic.twitter.com/dViPMGaHl4— Ofgem (@ofgem) December 1, 2021
The UK's energy price cap rose 12% at the start of October to help suppliers manage rising liquified natural gas costs.
The price cap is reviewed once every six months, and is expected to rise significantly in April as a result of the gas price.
Until then, many energy suppliers will have to sell gas for less than it is costing them to buy it, or decide to call it a day.
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