Ofgem confirms double supplier failure

Two small energy retailers have become the latest suppliers to exit the market, the regulator has confirmed this afternoon (18 February).

Whoop Energy and Xcel Power become the second and third retailers to enter the Supplier of Last Resort (SoLR) process this year, following the demise of Together Energy last month.

Whoop, which was based in Stoke-on-Trent, supplied gas and electricity to 262 customers in total – 50 domestic and 212 non-domestic.

Meanwhile, Derbyshire-based non-domestic supplier Xcel Power served 274 gas customers.

Whoop was issued with a final order last year after it failed to pay more than £56,000 in renewables obligation (RO) payments on time.

Additionally it was issued with a provisional order in November to pay more than £19,000 into the government’s Feed-In-Tariff scheme.

In September, Balancing and Settlement Code administrator Elexon announced it was expelling Whoop from the BSC after it failed to sufficiently reduce its credit cover percentage over a period of two working days.

Soaring wholesale gas costs continue to severely impact the energy sector.

Last year 27 suppliers exited via the SoLR process, with Bulb becoming the first supplier to enter the government’s Special Administration Regime.

So far this year just one other supplier, Clydebank-based Together Energy, has exited the market. Together supplied 176,000 customers.

Since 2008, more than 50 suppliers have exited the market via the SoLR process.