UK energy supplier One Select ceases to trade
LONDON, Dec 10 (Reuters) – A small British energy supplier,
One Select, has ceased to trade, regulator Ofgem said on Monday,
promising to find a new supplier soon for its 36,000 customers.
This is the third small energy supplier to have ceased
trading in as many weeks and Ofgem said last month it would
introduce financial and customer service tests for new entrants
to beef up their robustness.
“We have seen a number of supplier failures this year and
our safety net procedures are working as they should to protect
customers,” Ofgem said in a statement.
A push to increase competitiveness in Britain’s energy
market has reduced the market share of the six largest companies
to 70 percent from over 95 percent in recent years, with 60
smaller independent companies in operation.
However, their rapid rise has led to questions over their
viability as, with less capital available to make long-term
hedges, some may have been vulnerable to soaring wholesale
commodity price rises and renewable subsidy charges.
(Reporting by Sabina Zawadzki; Editing by Mark Potter)
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