UK energy supplier Zog Energy ceasing to trade regulator says

LONDON (Reuters) -Small British energy supplier Zog Energy is ceasing to trade, regulator Ofgem said on Wednesday, becoming the latest casualty of soaring wholesale energy costs.

More than 20 energy companies, often supplying both gas and electricity to homes and businesses, have collapsed since September, struggling with record high wholesale prices while the regulator’s price cap limits how much of the increases can be passed onto customers.

A new supplier will be found for Zog Energy’s 11,700 domestic customers and any outstanding credit will be protected, Ofgem said.

“In recent weeks there has been an unprecedented increase in global gas prices which is putting financial pressure on suppliers,” Ofgem said.

In October benchmark British wholesale gas prices hit record highs and were around 500% higher than in January as global demand for gas soared as economies recovered from the pandemic.

Prices have fallen back since but remain more than 300% higher than the beginning of the year and are expected to stay high this winter as gas stocks and supply of Russian gas to Europe remain lower than previous years.

(Reporting by Susanna Twidale, Editing by Louise Heavens)