Scottish Power is pulling out of the UK’s industrial and commercial (I&C) energy market, it has announced.
The energy company, a subsidiary of Spanish utility firm Iberdrola, said it was in contact with its customers amid a turbulent time for the industry.
Soaring wholesale prices have hit record highs as Russia’s invasion of Ukraine sparked fears over disruptions to gas supplies.
A spokesperson for Scottish Power said: “The energy market is facing unprecedented challenges and we have taken the decision to exit the I&C market.
“We are engaging with all our business customers individually.”
It comes as there are concerns a major Russian State-owned energy company supplying thousands of businesses, including an organisation running the heating and power for 4000 homes in Aberdeen, could collapse.
Gas giant Gazprom UK could be placed into administration in the coming days and it has been reported the UK Government is considering stepping in.
Aberdeen Heat and Power, along with many other business customers, has announced it is terminating its contract with Gazprom Marketing & Trading Retail Ltd over Vladimir Putin’s invasion of Ukraine.
A UK Government spokesperson said: “The UK is in no way dependent on Russian gas, which makes up less than 4% of our supply. Our highly diverse sources of gas supply and a diverse electricity mix ensures that households, businesses, and heavy industry get the energy they need.
“We are aware that Gazprom Energy has a large presence in the non-domestic energy retail market. Gazprom’s retail business continues to trade in the UK and customers should exercise their own commercial judgement with regards to energy supply contracts they have in place at the moment.”
Concerns have been raised around the Gambling Commission’s decision to appoint the new National Lottery licence to Czech operator Allwyn due to its reported links to Gazprom, Labour has said.
Culture minister Chris Philp said he asked the Commission to confirm to him it had conducted thorough inquiries to ensure the provisional licence awardee does pass the “fit-and-proper test”.
Philp said: “They have given me that assurance. There are also processes in place to take the proposed licence holder through the UK secure vetting process, and that work will be commencing shortly.”
At Prime Minister’s Questions last week, deputy prime minister Dominic Raab told MPs: “I understand that Allwyn’s owner Mr Komarek, who has long criticised the Putin regime, is in discussions with the Czech Republic government regarding the joint venture with Gazprom and removing its involvement.”