Two energy suppliers, Avro Energy and Green, have collapsed and ceased trading amid a crisis affecting the energy sector.
The companies, which had served 2.9% of the UK domestic energy market, blamed “unprecedented market conditions” for their collapse. A recent sharp rise in wholesale gas prices has seen many suppliers face financial difficulties, and price caps mean that suppliers are limited in how much they can charge customers.
The ceasing of trading by the two companies follows the recent collapses of a number of other small energy companies including People’s Energy, Utility Point and more.
It has also been warned that a number of other firms could go bust or face significant difficulties in the near future.
Affected customers will continue to receive energy supplies while the regulator Ofgem appoints a new supplier. However, customers may face different terms in energy contracts and the prices which they are charged.