First Energy Providers Go Bust in Germany, Czech Republic

Oct. 14, 2021 (EIRNS)—Otima Energie AG, an energy provider in Brandenburg, announced its insolvency yesterday and told its customers to seek another provider. A total of 430 customers are involved, mostly public administration and private firms.

The problem is that Otima could be the first in a long series of providers going bust because of the high gas prices. EnBW (Karlsruhe), Entega (Darmstadt) and E.ON are reviewing their prices for new customers, the German journal Focus reports.

In the Czech Republic, alternative supplier Bohemia Energy has shut off gas to 900,000 customers. Customers should be supplied by the state-controlled power company CEZ. Prime Minister Andrej Babiš said that price caps should be considered.

The EU released its “Toolbox” against the energy price yesterday. The box consists of measures that do not jeopardize the EU free-market system. Thus, there is nothing that could stop gas and electricity prices from rising, but only palliative measures, such as suggestions to give subsidies to households and companies. An EU-wide system of collective purchases is set as a longer term goal.