Two suppliers listed by Elexon as being in credit default have been expelled from the Balancing and Settlement Code (BSC) by the administrator.
The expulsion, which is subject to approval, of both Symbio Energy and Whoop Energy means they can no longer register any new customers.
Parties buying and selling electricity are required to post sufficient collateral to cover their outstanding payments in case they go under.
Level one default occurs when a supplier’s outstanding charges amount to more than 75 per cent of its cover, while level two means the outstanding charges amount to more than 90 per cent.
Symbio Energy, which was last month ordered to pay almost £450,000 into the Feed-in Tariff (FIT) scheme, is listed as having entered level two default on 16 September and level one the following day.
Elexon said as Symbio had failed to pay trading charges in full on three or more occasions over a 30-day period, it was in default under BSC Section H3.1.1(a)(A)(iii).
As such, the code administrator resolved to expel the supplier from the BSC, subject to approval by the authority.
Elsewhere, business only supplier Whoop Energy entered level two default on 13 September and level one on 15 September.
It too has been expelled (subject to approval) from the BSC after it failed to sufficiently reduce its credit cover percentage over a period of two working days.
The BSC panel added Whoop had not provided information to indicate it had a strategy in place to resolve its default.
Among parties listed as being credit default at the time of writing include Avro Energy, which was recently ordered by Ofgem to hand over financial and other information relating to the company’s activities.
The list also includes Amower and Delta Gas and Power.
Soaring wholesale costs, eight times higher than the average for 2019, have resulted in a scramble by the government and the wider sector to put in place an action plan for dealing with the energy crisis.
The impact has been felt by suppliers large and small, with one price comparison website even putting a halt to its energy services due to a lack of offerings from retailers.
You can read Utility Week’s latest analysis on the developing situation, and what it means for the sector, here.