UK gas supplier Goto becomes 13th to collapse amid soaring wholesale prices

London  — British energy supplier Goto Energy has ceased trading, regulator Ofgem said on Monday, becoming the 13th UK energy firm to go bust since the beginning of September as companies struggle with record wholesale energy prices.

Goto Energy supplied gas and electricity to about 22,000 domestic customers.

Many British energy suppliers have struggled with the soaring wholesale gas and electricity prices while the amount they are able to charge customers is limited by Ofgem’s price cap.

Ofgem said in a statement on its website that it will choose a new supplier for the affected customers and that the credit and payments in their accounts will be protected.

“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,” Neil Lawrence, director of retail at Ofgem, said.

Britain’s gas and electricity price cap for households rose 12%-13% from October 1 but wholesale prices have risen significantly since that announcement was made in August.

Analysts have said the difference between wholesale energy prices and those suppliers are now allowed to charge is about £400 per customer.

Britain’s business and energy secretary Kwasi Kwarteng warned earlier in the month that more energy companies could go bust amid record prices, but ruled out offering any support to struggling firms.

British energy prices have rocketed to record levels in October, largely due to soaring global gas prices, which have risen due to a number of factors including increased demand due to a post-pandemic recovery, low gas inventories and tighter-than-usual gas supplies from Russia.

Reuters