MORE energy firms look to be at risk of going bust as the UK energy crisis continues, but what is causing the issue.

Consumers have been urged not to worry about power shortages this winter, amid fears over an energy crisis.

With gas prices at record highs, energy supply firms are losing “a lot of money” due to the Government’s price cap, which is in place to stop instant bill increases for customers.

Industry leaders have offered their assurances over concerns that people will be without power to heat their homes over winter.

Though concerns remain for many.

Dermot Nolan, former chief executive of Ofgem, told LBC it is “likely” that many energy firms will start going out of business.

However, he added: “But I don’t think that’s a problem. It’s not great, but I would assure anybody who’s worried about whether their firm will go out of business or not.

“I would assure them you stay where you are, you will be looked after, you will be protected, you will actually be switched to another supplier and your credit balance will be preserved.

“So, though it’s never great to hear about the firm you’re with going out of business, you will be switched to someone else, you will be taken care of, so I would urge people not to worry about that.”

What to do if you energy company goes bust

Regulator Ofgem will automatically switch over your company if your current supplier goes into administration and your supply will continue uninterrupted.

What is causing the energy crisis?

The energy crisis has not been caused by one sole reason, there are a number of causes which are varied and have played a part.

Among them are earthquakes in the Netherlands, an attempt by China to tackle its air pollution problem and Russian politics.

And now soaring natural gas prices are being passed on to the consumer as demand outpaces supply.

Business Secretary Kwasi Kwarteng indicated on Sunday that struggling manufacturers and energy firms would not get much more support but said he was working closely with the Chancellor, Rishi Sunak, to help the industry.

However, a senior Treasury source insisted to the PA news agency that no such talks had taken place despite firms pleading for help to prevent further collapses as wholesale gas prices spiral.

It comes as Tory frontbencher Lord Agnew of Oulton said soaring energy costs were nothing to do with supply shortages, but were due to a “geopolitical move” by Russia to put pressure on Europe.

The Treasury minister’s unequivocal comments appeared to go further than the Government has gone before in pointing the finger directly at Moscow for the current crisis.

And it follows claims that Russia had been limiting gas supplies in a bid to prod regulators in Europe into moving quickly to certify the controversial new Nord Stream 2 pipeline.

Last week, a suggestion by Russian President Vladimir Putin that his country could boost natural gas supplies to Europe led to a drop in prices.

Pressed in the House of Lords over rising energy costs and calls for increased intervention and public ownership of “vital utilities”, Lord Agnew said: “The current squeeze on gas prices is nothing to do with the quantity of gas available.

“It is a geopolitical move by Russia to put pressure on Europe and we are caught up in that.

“Public ownership of our own utilities would make no difference.”