Seven German energy companies have gone bankrupt due to gas prices since early October

Seven energy companies in Germany have ceased operations since the beginning of October and have gone bankrupt in part due to rising gas prices.

Electricity supplier Stromio became the seventh company to be shut down. The main reason for the closure was the rise in gas prices in the spot markets.

However, as experts specify, consumers will not be left without electricity. If the next operator is closed, its customers will be provided with uninterruptible electrical supply at the expense of the company, which has the largest customer base in the region.

According to the German Federal Network Agency, since January 2021, 38 energy companies in the country have stopped supplying consumers. 12 of them have already closed, and the rest will complete their activities by December 31, 2021.
In 2021, gas prices for consumers in Germany rose by 18.4% and electricity prices by 46.6%.

At the end of October, it was announced by the head of the large energy company Scottish Power Keith Anderson that if the government did not take any measures, the country’s energy market would face an absolute defeat, which could lead to the bankruptcy of another 20 energy supply companies.