About 25,000 customers of Green would be acquired by Shell Energy.
Green is one of the seven minor energy suppliers that failed in a wave of failures that compelled the energy regulator Ofgem to seek out new providers for 2 million consumers.
According to Ofgem, former and present Green customers would have any outstanding credit on their balance honoured under the arrangement, with no disruption in supply expected when Shell takes over on Monday.
Green was the sixth of seven energy providers to fail since the beginning of August, after its CEO, Peter McGirr, warned in the Guardian that the global surge in gas prices would cause a “tsunami” of failures. There were a total of nine vendors that failed in 2021 and who combined catered to a total of almost 2 million households.
According to energy analysts at Barina Partners, there may be only 10 providers remaining by the end of the winter, down from 70 at the start of the year.
When a firm collapses, Ofgem is charged with finding replacement suppliers under the “suppliers of last resort” scheme, which is intended to keep homes from being turned off.
Shell Energy Retail CEO Ed Kamm stated: “We’re a well-capitalised provider with long-term goals to assist British homes achieve net zero emissions.”
“We’ve made it clear to Ofgem and the Department for Business, Energy and Industrial Strategy that we are ready to play our part and help support customers of failed energy suppliers and work now turns to welcoming those customers of Green and ensuring they have the best experience they can. Shell Energy will be working hard over the coming weeks to bring over all Green customers smoothly and swiftly. Green customers will receive 100% renewable electricity as standard as well as discounts on fuel via Shell Go Plus.”
the credit balances of Green’s customers would be secured, and supplies of energy would remain uninterrupted , according to Kamm. Within the coming few days, communication from Shell can be expected by Green clients, Kamm added.
“We realise that this news may be disconcerting for customers, but they do not need to worry,” said Neil Lawrence, Ofgem’s director of retail.
“Their energy supply will be maintained as usual, and their credit balances will be honoured. Shell Energy will be in contact with customers over the coming days with further information. Once the transfer has been completed, customers can switch if they wish to,” Lawrence added.
The wholesale energy markets in the United Kingdom have achieved new highs in recent weeks, as a number of factors have conspired to push the market higher.
The problem arises from a global spike in gas demand following a harsh winter that depleted gas storage facilities, as well as a resurgence in post-lockdown energy consumption across Asia. The rush to restock petrol stations before the advent of colder weather has driven market prices soaring.
Gas-fired power plants provide half of the electricity in the United Kingdom. Following a succession of nuclear reactor failures and the recent shutdown of a major power line bringing electricity from France, there has also been a higher-than-normal demand for gas power in recent months.
The UK has also seen one of its windiest summers since 1961, implying that wind power has been low. Experts predict that when temperatures drop, the situation will deteriorate.
(Adapted from TheGuardian.com)