Closure of low-cost energy supplier hits 160,000 customers

UP to 160,000 customers have been hit by the closure of Preston-based  challenger energy specialist GB Energy Supply.

The low-cost supplier which several months ago boasted the cheapest fixed-rate deal available  has reassured customers they would not be cut-off after announcing it was ceasing trading.

Managing director Luke Watson said on the company’s website: “Please rest assured your supply will not be affected”.

He said that the closure had been forced by “swift and significant increases in energy prices over recent months”.

The message to customers said: “As a small energy supplier our inability to forward buy energy to allow us to access the best possible wholesale prices means that the position of the business has become untenable and as such we will now be entering a process overseen by Ofgem to move you to a new supplier.”

GB Energy Supply is the first domestic energy supplier to go out of business in a decade, but analysts believe others may follow because of the increase in wholesale prices.