Goto Energy goes bust amid rising gas prices
Goto Energy has become the latest UK energy firm to cease trading amid a sharp rise in wholesale gas prices.
The firm supplied gas and electricity to around 22,000 domestic customers who will now be moved to a new supplier.
It joins a number of small firms that have gone bust following a global spike in gas prices.
Energy regulator Ofgem will now find a new supplier for households, who are asked to do nothing until the transfer takes place in the coming weeks.
Goto Energy’s collapse takes the number of customers affected by the current wave of UK energy company failures to more than two million.
Ofgem said that the unprecedented increase in global gas prices – which have risen 250% since the start of the year – was putting financial pressure on suppliers.
“Ofgem’s number one priority is to protect customers,” said Neil Lawrence, director of retail at Ofgem.
“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.”
Mr Lawrence added that if customers have credit, the funds are protected, so customers will not lose the money that is owed to them.
“Goto Energy is now the 16th provider to exit the market since the beginning of 2021,” said Justina Miltienyte, energy policy expert at Uswitch.com.
She said it was important that Goto Energy customers did not do anything until they were moved to a new supplier, as trying to switch providers could create administrative delays in getting their credit balance returned.
“They should make a note of their meter readings now, and again when contacted by their new supplier, to ensure their bills are accurate.”
Last week, Pure Planet, which was backed by oil giant BP, and Colorado Energy joined the growing list of small energy firms that have gone bust recently.
Pure Planet said it had been caught between rising costs and the UK’s energy price cap, which limits what companies can charge consumers.
This had left its business “unsustainable”, it said.
Nine suppliers collapsed in September, but business and energy minister Kwasi Kwarteng ruled out supporting struggling energy firms, although he warned more companies could collapse.
The regulator’s price cap, which covers 15 million households across England, Wales and Scotland, protects customers on default tariffs by limiting charges including how much customers pay per unit of energy.
But providers say they cannot pass on rising wholesale gas prices to customers because of the cap.
Suppliers that have recently gone bust include Avro Energy, People’s Energy and Green Supplier Limited.
Rising prices have had reverberations throughout the supply chain.
Last week, gas shipping firm CNG wrote to its energy supplier customers saying that it would no longer supply the wholesale market.
CNG supplies roughly 46,000 small businesses, including 10-15 small domestic energy suppliers, through its wholesale business.