ScottishPower — owned by Bilbao-based green energy giant Iberdrola — is planning to stop selling energy to UK industrial and commercial (I&C) customers, Reuters reported.

Energy companies have faced soaring wholesale prices which hit record highs following Russia’s invasion of Ukraine.

“The energy market is facing unprecedented challenges and we have taken the decision to exit (the) I&C market,” said ScottishPower.

“There is no impact on existing business customers, we will continue to honour all contracts and no employees are affected by this decision.”

The Reuters report said ScottishPower’s decision also comes amid media reports that Gazprom Marketing & Trading Retail, which supplies energy to 20% of UK businesses, is seeking a buyer and could be placed in government special administration as some customers try to exit contracts and sever ties with the subsidiary of Russian state energy firm Gazprom.

Centrica, owner of British Gas, said earlier this month it would exit its gas supply agreements with Russian counterparts, principally Gazprom Marketing & Trading.