Southampton firm Igloo Energy has told customers "it is with great regret" that it has announced the company has ceased trading.

In a statement sent out on Wednesday, co-founders Matt Clemow and Henry Brown thanked people for their support.

The firm, based at Mountbatten House in Grosvenor Square, supplied energy to around 179,000 people.

In the statement, they apologised for the impact "this will have on those customers we have been proud to supply".

Under Ofgem’s safety net, the energy supply to all affected customers will continue and credit balances will be protected.

Here is the statement in full:

"We founded Igloo with the aim to sell as little energy as possible to our customers. We did that because we think it’s the right thing to do. Energy isn’t just about price, it’s also about how much is used and the hassle involved in making changes to reduce its consumption. Less energy is good for your pocket and for the planet.

"You will no doubt have seen the many press articles relating to the impact of incredibly high gas prices, with UK wholesale prices increasing 5 fold in recent months.

"While this short-term crisis does present a significant challenge for us all, there is a much larger climate crisis looming unless we all focus on the impact each of us has on the environment.

"While there is a lot of focus on electricity – be that wind farms and solar panels for generation or electric vehicles for transport – unless we make a substantial change to the way we heat our homes, the cause of the majority of CO2 emitted from households, we will, as a nation, be consistently behind the curve in reducing the impact we all have on the environment.

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"From the start, our goal was to build an integrated energy and home services company that would make it incredibly simple for homeowners to make those changes. Over the last four years we’ve built a data platform that enables customers to gain specific insights on key areas where they can make simple and effective changes that have a meaningful impact on energy use. We’ve built tools that provide personalised savings assessments for installing smart thermostats and are the first company in the UK providing an online heat pump estimate, designed for your home.

"Despite the lockdown and the failed and mismanaged government Green Homes Grant scheme, we’ve been investing in building our heat pump installation capabilities. We have also launched an industry first with our Clean Heat Switch scheme, where customers can get a heat pump installed for the upfront price as a traditional boiler replacement. Heat pumps really are no longer as expensive as the mainstream media and other gas companies would lead you to believe.

"However, our core business of energy retail operates in a market that is sadly no longer sustainable for Igloo. The energy price cap which was introduced by Government has been an important tool for ensuring that consumers are not unfairly penalised on standard variable rate tariffs. While we continue to support the price cap mechanism, the basis on which it’s calculated by Ofgem is designed to favour the largest suppliers and any calls to review this by the challenger brands, like Igloo, continues to be resisted. The current extreme price shock that we’re experiencing is one that few, if anyone, anticipated.

"We have taken our responsibilities as an energy supplier over the last 4 years very seriously. We have consistently delivered market-leading customer service, as evidenced by our achieving the top position in the Citizens Advice Bureau’s customer service ranking for 3 of the last 5 quarters. We’ve also delivered some of the lowest complaints figures in the industry, being ranked in the top 3 best suppliers since the very beginning.

"It is with great regret that we need to therefore inform you that Igloo Energy Supply Limited is ceasing to trade, and your energy supply will now be transferred to a new supplier. You need not worry; your supply is secure and funds that you have paid into you accounts will be protected if you are in credit. 

"Our heat pump business, Igloo Works, will be continuing to trade and is unaffected by this news. For those customers who have installations booked we’ll be in touch shortly. For all our energy customers, we’re still planning on doing everything we can to help people use less energy. The climate issue isn’t going away. If you would like Igloo Works to stay in touch about how we can help you use less energy, please click the link below.

"We would like to take this opportunity to thank our team as they have worked tirelessly on behalf of our customers. We would also like to apologise for the impact this will have on those customers we have been proud to supply. Our whole team are extremely grateful for the words of support many of you have shared in recent days and I’d like to thank all of you who have been kind and supportive of our Igloo family.

"Our team will continue to do everything they can to help support your transfer to your new supplier even though their jobs are now at risk, please be kind."