British gas supplier writes to energy firms after CNG exit

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British gas supplier writes to energy firms after CNG exit

This can include advertisements from us and third parties based on our understanding. Ecotricity founder Dale Vince wrote to the energy firms after a forced market exit of CNG, who they use to ship their gas. In a letter to GoodEnergy, Mr Vince said: I understand that Good Energy are affected by the sudden exit of CNG who provide gas services to some 20 smaller energy companies.

You need a gas sender and I'm writing today to offer to provide this service for you. As a result of CNG's forced market exit, there were fears of a domino effect, with its exit impacting upon smaller companies who rely on them for gas. CNG, a gas wholesale company, said that all deliveries to the 18 energy companies it delivered would be stopped. CNG told these companies that they would need to buy gas from elsewhere, which is likely to result in a steep rise in costs for small suppliers and hundreds of retail businesses.

The company was hit by the collapse of some major customers, including CNG, who had not paid them for gas supplied to households by Avro Energy. This comes as more than 10 energy suppliers have gone bust since the start of September, as companies struggle with rising wholesale prices. This month, the British energy prices have risen to record levels, primarily due to the soaring global gas prices, partly as a result of the post-pandemic recovery, limited Gas inventories and limited gas supplies from Russia. Many British energy suppliers have struggled with the soaring prices, while the amount they are able to charge customers is capped by Ofgem.

GOTO Energy Ltd became the 12th energy supplier in the UK to go bust today. The transmission network GOTO Energy supplied electricity to around 22,000 customers in the UK. While Britain's gas and electricity price cap for households increased from 11 percent to 12 percent from the start of October, wholesale prices have risen significantly since that announcement was made in August. Britain's energy minister warned earlier in the month that more energy companies could go bust amid record prices, but ruled out giving any support to struggling firms. Are energy bills tax to be raised by government after increase of crude oil prices? Your top SIX questions INSIGHT Meghan and Harry snubbed as Biden prioritises Queen over Sussexes REVEAL Business Secretary Kwasi Kwarteng told the Energy UK conference: We could well see companies going out of the market. Government will not bail out failed companies, there cannot be reward for irresponsible management. In earlier this month, Ecotricity attempted a hostile takeover of GoodEnergy which failed because they didn't secure minimum required levels of acceptances from shareholders. Mr Vince addressed this in his letter, saying: I do so as the largest shareholder in the company and despite the hostility that we have shown, throughout our shareholding and more recently during our offer to buy the company. Many shareholders purchased our shares over five years ago with the intention of assisting Good Energy and ensuring its continued operation and success in the green space.