Daligas has become the latest company to go out of business due to the soaring cost of gas, which it cannot pass on to customers due to the Ofgem energy price cap
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The UK energy crisis has claimed another victim as provider Daligas has stopped trading.
Daligas supplies energy to around 9,000 households and businesses.
A statement on the Daligas website said: “From the 14th of October 2021, due to the unprecedented energy market conditions, the record high wholesale prices and the current energy cap set by the industry regulator Ofgem, we are unable to keep our team and business operating.
“From all of us, please accept our deepest thanks for your support throughout all these years.”
Many energy companies are going out of business due to a combination of rising gas prices and the energy price cap, set by the Ofgem regulator.
This cap limits the amount firms can charge the average customer on their default gas and electricity tariffs – usually variable-rate deals.
But these providers are grappling with the soaring cost of gas – which currently costs five times its normal amount.
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Energy firms can’t pass all of that cost on to consumers due to the cap. Since October 1 this has been £1,277 a year for normal energy use.
As a result, many are being forced to stop trading.
What to do if you are a Daligas customer
If your energy firm collapses, the advice from Ofgem is to sit tight and wait until your new supplier contacts you.
You should wait until you know which firm you’ve been moved to before you decide to look into switching elsewhere.
In the meantime, take a meter reading for when your new supplier contacts you so it can correctly bill you.
It is important to check prices as soon as you know which deal you’ve been moved to, as you may not necessarily be transferred over to the cheapest supplier.
You won’t be charged exit fees for switching away from your new energy provider.
Earlier this week renewable energy provider Pure Planet became the latest to stop trading due to the soaring cost of gas.
A note on the firm’s website said: “Pure Planet is ceasing to trade.
“Due to the global energy crisis, record high wholesale energy costs, and the restrictions placed on us by the Ofgem price cap, we are unable to keep operating Pure Planet. “
The supplier has 235,000 customers.
A number of energy firms have stopped taking on new customers as the supplier crisis engulfing the industry continues.
Green and Avro Energy were the next to go under, both ceasing to trade on September 22.
The industry forecasts the number of suppliers in the market to fall to just 10 by Christmas. That compares to 71 in January this year.