OFFICIALS are seeking assurances that the gas stays on in Wales this winter as the energy crisis continues to escalate.
The Welsh Government’s Climate Change Minister has written to Ofgem to seek “assurance in writing of the continuity of supply” of gas, following the confirmation this afternoon that two more energy companies have collapsed.
Avro Energy which has 580,000 customers and Green Supplier Limited, which has 250,000, both announced they were to cease trading, meaning seven companies have now gone bust after the price of gas has soared in recent weeks.
Both companies said that customers will continue to receive energy while a new supplier is appointed.
The boss of regulator Ofgem warned the gas price rise was "something not seen before" and more firms would fold.
Responding to a Topical Question asked by Delyth Jewell MS in the Senedd, Climate Change Minister Julie James said: “We were also very concerned to understand, just for continuity of supply, never mind price, that we had insufficient numbers of larger companies able to take across Welsh consumers who are currently receiving supply off companies likely to go out of business in the very short term.
“So, we’re working on assurances to that and to make sure that we have that information from Ofgem so that we can help make that transition happen.
“This is leaving aside the issue of whether people can pay for it. This is actually just making sure the gas stays on so they can cook and, indeed, heat their homes.
“I’ve written to Ofgem subsequent to the meeting, seeking their assurance in writing of the continuity of supply for Welsh consumers and that consumer rights will be protected.”
In response, Delyth Jewell MS said: “I am deeply concerned that the Welsh Government has felt the need to seek written assurances from Ofgem about the continuity of supply of gas for Welsh households and businesses.
“The priority now has to be to find ways to meet demand in the short term, and I would expect the UK Government to pull out every single stop to ensure this happens.
“They must also announce an immediate financial assistance programme to prevent any individual having to choose between heating or eating over the coming weeks, and the winter months, which must include the immediate cancellation of the planned cut to Universal Credit.”
Speaking in the Senedd Ms Jewell added: “We shouldn’t underestimate the scale of the crisis. The head of Ofgem has said today to MPs that the price increase was unprecedented and that gas prices are already six times higher than last year – having increased 70 per cent in August alone.
“But however global or complicated the causes of the crisis are, the impact will be very simple, and it could be devastating for low income households. Because this won’t be visited on them alone: thousands of families will see their Universal Credit cut, they’ll face increased living costs, and now bigger energy bills.”
Ofgem has said that it would ensure that Avro and Green’s customers would be protected.
Neil Lawrence, Director of Retail at Ofgem, said: “Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.
“I want to reassure customers of Avro Energy and Green Supplier Limited (’Green.’) that they do not need to worry. Under our safety net we’ll make sure your energy supplies continue. If you have credit on your Avro Energy or Green Supplier Limited account this is protected and you will not lose the money that is owed to you.
“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your tariff.
“Any customer worried about paying their energy bill should contact their supplier to access the range of support that is available."







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