GB Energy Supply: Energy firm ceases trading after price rise

Company - Pavan Pandey - Nov 30,2016

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gb energy supply energy firm ceases trading after price rises

An energy firm registered in England and Wales, GB Energy supply Ltd, said that a small supplier business has become untenable.

GB Energy Supply Ltd with 160,000 customers has ceased its trading; the company is blaming the recent energy price rise as the prime cause.  

The 160,000 UK households are about to face higher energy bills in the New Year 2017, after the collapse of a trend-setting low-cost energy firm GB Energy. The three-year-old gas and power supplier firm, which dragged in customers with cheaper tariffs, totally blamed “swift and major upsurges in energy prices” for its shutting operations.

The Chief Executive Officer of Green Energy UK PLC, Doug Stewart, said: “The closure of GB Energy is as a result of loss-making tariffs coming home to roost.

After GB Energy Company ceased trading, Ofgem, the power market regulator, stated it would switch GB Energy’s 160,000 customers to a new supplier. Ofgem, the energy regulator guided the customers to take a meter reading and wait until their new supplier contacts them.

GB Energy supply Ltd is the first independent electricity and gas supplier company to fail since energy prices, which have been low for the previous two years; worsened by the reduction in the pound since the United Kingdom’s vote to leave the European Union. However, rising energy costs have played to the benefit of the UK’s great six energy suppliers, British Gas, EDF, Eon, SSE, Npower and Scottish Power as these suppliers possess their own generation capacity. In a letter to customers on the GB Energy Supply website, managing director of the company, Mr. Luke Watson said, it is with regret that we are informing that GB Energy Supply is no longer trading and therefore you will be unable to access our website at this time. He further added “During this process, all customer contracts will be honoured, so please rest assured that your supply will not be affected.”