The challenger supplier is understood to be hanging in the balance along with three more suppliers that are in insolvency talks due to out of control wholesale prices
Igloo Energy is understood to be in insolvency talks amid warnings multiple firms could fold in the coming days.
The challenger supplier, which has around 100,000 customers, is in talks with Alvarez & Marsal – the consultancy giant overseeing struggling supplier Green.
It has already stopped taking new customers, Sky News reports.
The latest warning comes just hours after Ofgem boss Jonathan Brearley told the Business Select Committee many more suppliers are likely to collapse in the coming weeks due to soaring wholesale gas prices.
Brearley said firms are struggling to shoulder the increased costs and as a result, are slowly shutting down.
Surging gas prices have dealt a devastating blow to the energy industry as a number of other suppliers have already folded in the past week.
Meanwhile Utility Point and People’s Energy have already met their fate.
The price hikes are caused by increased post-pandemic demand, which has seen wholesale costs jump 250% in nine months.
The crisis has already forced carbon dioxide (CO2) processing plants to shut, having consequences on food, namely meat suppliers in supermarkets.
How the gas shortage affects you
Igloo along with other suppliers was today ordered by the industry regulator, Ofgem, to pay cash into a government renewable energy scheme or risk losing its licences, which is what’s lead to the bailout requests.
But energy firms in the “the big six” like Eon have called on ministers to scrap green levies as a way to ease the pressure on the industry.
Igloo has stopped taking on new customers for the time being but a notice on its website says: “We can reassure you that your energy supply is secure and all credit balances are protected.”
There are now roughly 40 suppliers in the UK market, sharply down from a peak of 70 in 2018.
Igloo Energy was founded in 2016 by Duncan Ellis, Henry Brown and Matthew Clemow. In 2019 it recorded annual revenues in excess of £33million.
The Mirror has approached Igloo for comment.
If your supplier collapses, Ofgem will assign you a replacement supplier. It insists that there will be no blackout period.
In the interim, customers are advised to take a meter reading and wait for correspondence from their new supplier.
Here are your rights if your energy supplier collapses.
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