Lights out for firms in fierce power market

SOME 24 companies supplying electricity in the UK went bust last year, a record number.

The cut-throat market in recent years, with the margins becoming razorthin, has been blamed for many closures.

That also led to 17 such businesses disappearing in 2018 with five having gone to the wall during the previous 12 months.

Wholesale costs of electricity reached a peak two years ago while the energy price-cap has additionally eaten into profits.

And now firms are forced to pay an annual renewable power fee if enough of the energy they sell does not come from green sources.

Paul Pittman, from accountants Price Bailey which obtained the data via a freedom of information request, said: “There has been a lot of focus on the retail end of the supply chain but whenever an energy retailer goes bust there is a knock-on effect down the supply chain.

“The number of retail energy suppliers going bust is actually just the tip of the iceberg.

“Businesses engaged in the trade of electricity, which are creditors to retail energy suppliers, are going to the wall in record numbers.

“We are seeing a domino effect. Every time a small energy retailer does go bust, that increases the financial strain on the rest of the supply chain, making those businesses more vulnerable to collapse.”

The biggest casualties among the suppliers have included Economy Energy, Extra Energy, Spark Energy and Toto Energy.