German energy retailer Otima declares insolvent as energy crisis hits

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FRANKFURT, October 13 (Reuters) – Otima Energie, a small German electricity and gas distribution company, declared itself insolvent on Wednesday, the latest victim of soaring energy prices, while E.ON , Entega and EnBW have temporarily withdrawn their gas deals from the price comparison. Verivox portal.

Suppliers across Europe are grappling with soaring prices due to factors ranging from insatiable Asian demand to Europe’s carbon policy and a period of lighter winds.

In Britain, nine electricity suppliers collapsed in September alone and on Wednesday Bohemia Energy, one of the Czech Republic’s largest electricity and gas suppliers, shut down operations. Read more

Otima from Neuenhagen near Berlin said it stopped providing electricity when business closed on October 11, blaming an extreme rise in wholesale market prices that raised the cost of advance purchases and down payments. She added that one of her own suppliers had stopped deliveries to the company.

Under German law, Otima customers will continue to receive energy, with the largest retailer operating in their region subjecting them to a general tariff which may be high but is renegotiable.

Electricity prices for typical households have risen 9.3% over the past twelve months to an all-time high in October of 1,255 euros ($ 1,452.04) per year, Verivox said in a note prepared for Reuters. Annual retail gas supply contracts jumped 28.2% year-on-year to 1,402 euros in October, he added.

Verivox said that E.ON (EONGn.DE), Southwestern EnBW (EBKG.DE) and state-owned company Entega in Hesse have asked it to temporarily withdraw their gas offers from its price comparison site. while they were recalculating the prices.

Entega and EnBW confirmed this was the case while adding that direct applications from clients outside the portal, who take a commission, would be accepted.

E.ON (EONGn.DE) announced on Tuesday that it had temporarily suspended new residential gas customer contracts. Read more

On September 24, the Lower Saxony company DEP stopped supplying gas and electricity to its customers. Read more

($ 1 = € 0.8643)

Reporting by Tom Kaeckenhoff and Vera Eckert, editing by Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.


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