{"id":141795,"date":"2021-10-14T23:31:48","date_gmt":"2021-10-14T23:31:48","guid":{"rendered":"https:\/\/precoinnews.com\/?p=141795"},"modified":"2021-10-14T23:31:48","modified_gmt":"2021-10-14T23:31:48","slug":"daligas-becomes-latest-energy-supplier-to-crash-amid-unprecedented-conditions","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/daligas-becomes-latest-energy-supplier-to-crash-amid-unprecedented-conditions\/","title":{"rendered":"Daligas becomes latest energy supplier to crash amid ‘unprecedented conditions’"},"content":{"rendered":"
The energy supplier Daligas is set to become the industry’s latest victim as the company folds under the pressure of record high wholesale prices and volatile market conditions.<\/p>\n
It was the third to collapse this week.<\/p>\n
The London-based company, which has 9,000 customers, said that it was unable to keep its team and its business operating because of the crisis currently roiling the energy sector.<\/p>\n
<\/p>\n
It blamed “unprecedented conditions” – including the UK’s price cap on energy and soaring wholesale prices – on the supplier’s collapse.<\/p>\n
So far, more than a dozen energy firms have gone out of business since the start of September as they struggle to contend with wholesale prices.<\/p>\n
Pure Planet and Colorado Energy said they had ceased trading on Wednesday evening, and Ofgem later confirmed their respective customer bases would be allocated a new supplier in the coming days.<\/p>\n
BP-backed Pure Planet, which has 235,000 households on its books, ran into difficulty when the energy giant refused additional funding.<\/p>\n
Colorado Energy had just 15,000 customers.<\/p>\n
The regulator’s statement said: “Under Ofgem’s safety net, customers’ energy supply will continue and funds that domestic customers have paid into their accounts will be protected, where they are in credit.<\/p>\n
“Customers of these suppliers will be contacted by their new supplier, which will be chosen by Ofgem.”<\/p>\n
The demise of Pure Planet and Colorado means that 14 small suppliers have collapsed this year – 11 of them over the past six weeks.<\/p>\n
Follow the Daily podcast on Apple Podcasts, Google Podcasts, Spotify, Spreaker<\/strong><\/p>\n They have been hurt by business models that expose them to near-term delivery contracts for raw energy, which have shot up – by more than 500% at one stage this year – because of a range of pressures on supply Europe-wide.<\/p>\n They include gas storage shortages after a cold end to last winter and stiff competition from Asia to replenish stocks.<\/p>\n In the UK, poor weather conditions for wind generation have raised demand and a fire at a power interconnector with France in Kent last month are also contributory factors.<\/p>\n The consequences of the energy crunch have been wide-reaching before winter even hits.<\/p>\n Business Secretary Kwasi Kwarteng has appealed for Treasury help<\/strong> to support high users of energy in industry – such as steel and chemical plants – amid warnings that unprecedented rises in costs will force them to shut down.<\/p>\n