More than 1.5 million people across Britain have now been affected by energy suppliers going bust after the price of buying wholesale gas shot up. Rising costs are putting pressure on suppliers with smaller and medium-sized companies feeling the worst impact of the crisis. Six firms have already folded in September, with fears more could shortly follow suit.

       The price of wholesale gas has surged by 250 percent since the beginning of 2021, with a 70 percent increase reported since August alone, according to figures from Oil & Gas UK.

       Small energy firms in the UK are struggling to survive as they battle against rising costs.

       These energy companies are struggling as global economies awaken after the coronavirus pandemic which has prompted an increase in demand for gas.

       Europe is on the precipice of winter and therefore prospective gas demand will be at its highest, especially as the UK relies on gas to heat homes.

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       Experts have said the sector has been hit with a perfect storm.

       Supply from Russia has dried up, demand is high in Asia, wind speeds in the UK have been low and cables that import electricity from France were damaged last week.

       Many small energy suppliers are in dire straits as they have not protected themselves against the potential implications of rapidly rising prices.

       Companies that have relevant insurance covering this outcome are now reaping the benefits, which leaves them vulnerable to further shocks in the future.

       There are now roughly 40 suppliers in the UK which is a sharp drop from a peak of 70 in 2018.

       Two more gas firms went bust on Wednesday affecting 1.5 million households.

       The collapse means a total of nine suppliers have crashed this year - impacting 1.9m homes.

       Neil Lawrence, a director at Ofgem, said it was “a worrying time for many people” but urged households to wait for a new supplier to be appointed before trying to switch energy deals.

       UK energy companies Bulb and Igloo are reportedly on the brink with the former seeking a bailout and the latter in talks with a professional services firm on a potential insolvency process.

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       You can see from the graphic above how many customers have been affected by the latest collapses.

       If your energy supplier fails, the energy regulator Ofgem will ensure customers’ gas and electricity supply continues uninterrupted.

       Customers will be switched to a “supplier of last resort” with any credit with the old supplier transferred over.

       If a supplier of last resort is not possible, a special administrator is then appointed by Ofgem and the UK Government.

       The old tariff will end and the new supplier will put you on a special "deemed" contract, which will last for as long as you want it to.

       A deemed contract can prove more expensive as the new supplier is taking a bigger risk.

       However, Ofgem will seek to get energy customers the best deal possible for their circumstances.

       Consumers should take meter readings and be sure to pass these on to new suppliers.

       Once a new supplier reaches out, you should ask to be put onto their cheapest deal - after which you can shop around and switch if you find a better deal.

       You will not be charged any exit fees for leaving in this manner.