With the rapid increase in wholesale gas prices, many energy suppliers are potentially in trouble. Within the last 3 weeks alone, 6 suppliers have gone bust. This has led to speculation that Igloo Energy could be the next to go bust.
With the energy price cap meaning that suppliers cannot charge customers more than a certain amount, some suppliers are struggling financially as they cannot pass these increased wholesale prices on to customers.
Has Igloo Energy gone bust?
Yes, as of 29th September 2021, Igloo Energy have gone bust.
Sky News however reported that Igloo Energy was on the brink of collapse. According to their report, Igloo were in talks with a professional services firm about a potential insolvency process.
Currently, Igloo are also no longer taking on any new customers. On their website, however, they say this is only temporary and that they “look forward to welcoming new pioners in the future”
Has Igloo been in trouble with Ofgem?
Yes, on 21st September 2021 they were handed a provisional order from Ofgem for failing to pay into the Feed In Tariff (FiT) scheme. They failed to make a payment of £316,582 by the deadline of 17th September.
The FiT scheme is a government programme designed to promote the uptake of small-scale renewable and low-carbon electricity generation technologies.
How many people will be affected?
If Igloo Energy were to go bust, it seems around 100,000 customers would be impacted.
This amount is much smaller than the two suppliers that went bust last week. Avro Energy had 580,000 customers and Green. had just over 200,000. In fact, it would mean Igloo would be the 6th largest supplier to go bust this year.
What do happens if they go bust?
If you are an Igloo Energy customer, or a customer of any UK supplier that goes bust, the advice from Ofgem is to hold tight.
They advise you to take a meter reading (and cancel your direct debit if you wish) and wait for them to appoint a new supplier.
Your gas and/or electricity supply will not be affected and any credit balance you have will be safe.
You can more about in our post on what to do if your supplier goes bust.