(Alliance News) -Â Centrica PLC on Monday said its British Gas will take on customers of failed energy supplier People's Energy.
The news comes as UK Business Secretary Kwasi Kwarteng holds a fresh round of crisis talks with the energy industry on Monday amid fears more small suppliers could go to the wall.
Wholesale prices for gas have more than tripled since January – with a 70% rise since August alone, leading to calls for support from the industry. The rise in gas prices has been blamed on a number of factors, including a cold winter which left stocks depleted, high demand for liquefied natural gas from Asia and a reduction in supplies from Russia.
People's Energy ceased trading on Tuesday last week, Centrica said. People's Energy serves around 350,000 domestic customers and around 500 business customers.
"The actions we have taken over the past couple of years mean Centrica is in a robust financial position, and, as a responsible energy supplier built on a sustainable model, we are well hedged for the coming winter. We have now taken on the customers of four failed energy suppliers through Ofgem's Supplier of Last Resort process in 2021," said Chief Executive Chris O'Shea.
Shares in Centrica were up 1.9% to 52.07 pence in London on Monday afternoon.
Besides People's Energy, British Gas has taken on the customer base of Simplicity Energy, PfP Energy and MoneyPlus Energy via Ofgem's Supplier of Last Resort process this year.
By Lucy Heming;Â lucyheming@alliancenews.com
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Centrica (CNA)