Entice Energy and Orbit Energy are the latest two energy suppliers to collapse amid the ongoing energy price crisis hitting the UK.
“Every time a supplier goes bust the costs of the remaining suppliers increase, which makes those businesses more vulnerable,” explained Matt Howard, partner at accountancy firm Price Bailey.
Ofgem, the industry’s regulator, has confirmed that new suppliers, likely to be one of the ‘big six’, will be found for the customers of the two companies via the supplier of last resort procedure.
These two collapses take the total number of energy companies to go under since the beginning of August to 25 and industry experts forecast there will be just 10 British energy suppliers left by Christmas compared to more than 50 in June.
“This time next year we will have far fewer suppliers and higher household energy bills,” Bailey said.
Earlier this week, Bulb, Britain’s seventh-largest energy supplier, announced it would be entering administration.
Its customer base of 1.7mln meant it will be the first-ever to use the special administration regime to keep going.
Effectively, it means Bulb has been nationalised by the government, a move expected to cost the taxpayer billions to unwind.