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Neon Reef Limited, Social Energy Supply cease to trade in Britain

Neon Reef Limited, Social Energy Supply cease to trade in Britain 1

LONDON (Reuters) – Two more British energy suppliers, Neon Reef Limited and Social Energy Supply, have ceased to trade, regulator Ofgem said on Tuesday, taking the tally of companies to collapse in the country since the start of September to 19.

Many British energy companies, often supplying both gas and electricity to homes and businesses, have struggled in the face of soaring wholesale energy costs, because the regulator’s price caps limit how much of the increases can be passed on to customers.

Neon Reef Limited supplies around 30,000 domestic electricity customers, and Social Energy Supply around 5,500 customers.

“In recent weeks, there has been an unprecedented increase in global gas prices which is putting financial pressure on suppliers,” Ofgem said in a statement.

A total of around 2 million customers have been forced to change energy companies this year.

Customers’ potential new energy costs will be covered by the regulator’s price cap, but if they were on cheaper fixed tariffs, they may have to pay more with their new supplier.

The cap is updated twice a year and rose by 12-13% from the start of October, but wholesale prices have risen far more since that cap was set in August.

(This story officially corrects to change company name in headline, first and second paragraphs to Neon Reef, from Neon Energy, after Ofgem corrected its announcement)

(Reporting by Susanna Twidale in London, Priyanshi Mandhan in Bengaluru; Editing by Devika Syamnath and Bernadette Baum)

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