Zog Energy becomes the latest corporate victim of the energy crisis
Zog Energy becomes the last victim of the energy crisis and almost 12,000 households are switching to a new supplier
- Ipswich-based company’s wholesale supplier Contract Natural Gas ceased trading
- Founder Says They Have Been Left In ‘Untenable Situation’ And Forced To Close
Zog Energy is the 24th energy supplier to go bankrupt in 2021, forcing regulator Ofgem with 11,700 additional customers to find an alternative supplier.
The collapse of Ipswich-based Zog comes after the closure of its wholesale provider and follows the effective nationalization of Bulb, which was placed under administration last week, as well as the closure of smaller providers such as Arvo Energy and Green.
UK energy suppliers continue to succumb to the weight of rising wholesale energy prices, which are much higher than what they can charge customers due to the government’s price cap.
Energy supplies to Zog customers will continue and funds deposited by domestic customers into their accounts will be protected
Zog’s founders told customers on Wednesday that the company stopped trading despite their investment “in the best technology to keep costs down and pre-purchased our gas from Contract Natural Gas to fulfill the promise we made to customers to easy to supply cheap domestic gas’.
The wholesaler, Contract Natural Gas, has withdrawn from the market and ceased trading, and Zog’s managers were “unwilling to transfer the previously agreed gas caps,” the founders explained.
“This has put us in an unsustainable position of having to buy gas at the current market price and we have no choice but to stop trading.”
Energy supplies to Zog customers will continue and funds that domestic customers have deposited into their accounts will be protected where they are on credit, Ofgem said.
Domestic customers are also protected by the energy price cap when switching to a new supplier.
The regulator told customers to take a meeting reading for when their new provider, who will be chosen by Ofgem, contacts them.
“This will make the process of transferring customers to the chosen supplier and honoring money that domestic customers have deposited into their accounts, where they are on credit, as smooth as possible,” it explained.
Retail Director at Ofgem Neil Lawrence said: “Ofgem’s number one priority is protecting customers. We know this is a disturbing time for many people and the news of a supplier going out of business can be disturbing.
‘I want to reassure affected customers that they don’t have to worry, under our safety net we ensure that your energy supply continues as usual.
‘You can simply rely on your energy supply. We will keep you informed if we have chosen a new supplier, who will then contact you about your rate.’