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GOTO Energy becomes latest UK energy supplier to go bust

·1-min read
An electricity pylon near Ellesmere Port

LONDON (Reuters) - British energy supplier GOTO Energy Ltd has ceased trading, regulator Ofgem said on Monday, becoming the 12th UK energy firm to go bust since the beginning of September as companies struggle with record wholesale energy prices.

GOTO Energy supplied gas and electricity to around 22,000 domestic customers.

Many British energy suppliers have struggled with the soaring wholesale gas and electricity prices while the amount they are able to charge customers is limited by Ofgem's price cap.

Ofgem said in a statement on its website that it will choose a new supplier for the affected customers and that the credit and payments in their accounts will be protected.

"I want to reassure affected customers that they do not need to worry: under our safety net we’ll make sure your energy supplies continue," Neil Lawrence, director of retail at Ofgem, said.

Britain's gas and electricity price cap for households rose 12%-13% from Oct. 1 but wholesale prices have risen significantly since that announcement was made in August.

Analysts have said the difference between wholesale energy prices and those suppliers are now allowed to charge is around 400 pounds ($545) per customer.

Britain's energy minister warned earlier in the month that more energy companies could go bust amid record prices, but ruled out offering any support to struggling firms.

British energy prices have rocketed to record levels this month, largely due to soaring global gas prices which have risen due to a number of factors including increased demand due to a post-pandemic recovery, low gas inventories, and tighter-than-usual gas supplies from Russia.

(Reporting by Bozorgmehr Sharafedin; Editing by Susan Fenton)

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