INSPIRED Energy's shares slid 10 per cent on the FTSE AIM All-Share yesterday, warning of a £3m hit if Gazprom Energy ceases trading.

In a statement to the London Stock Exchange, the service provider's board revealed that five per cent of its overall revenues are dependent on clients contracted with Gazprom Energy.

The troubled Kremlin-backed supplier is reportedly chasing buyers following a mass exodus of major clients after Russia's invasion of Ukraine last month, raising questions over its future.

Gazprom Energy supplies energy for UK businesses, which rely on the firm for around 20 per cent of domestic commercial energy needs.

Gazprom Energy is likely too big for Ofgem's supplier of last resort process.

If the firm collapses, it could fall into special administration alongside Bulb Energy - which has been propped up with £3bn of public funds.

Ofgem told City A.M. Gazprom Energy continues to trade in the UK with a supply licence, but refused to comment on media reports suggesting its executives have been holding talks with rivals over a potential takeover.

Gazprom Energy is well placed to attract interest from buyers, as it does not sell gas from its Russian parent but instead resells gas from the National Grid.

This comes from multiple providers including the North Sea - with both business secretary Kwasi Kwarteng and Prime Minister Boris Johnson calling for more exploration in the region.

In contrast to households, business energy suppliers are not limited with any cap on how much they can charge.

(c) 2022 City A.M., source Newspaper