Ofgem hunts for rescue supplier after energy firm goes bust

26/01/2018News
Energy management for businesses

he energy regulator is on the hunt for an company in the sector willing to take on the 10,000 customers left stranded in the wake of another collapsed provider in the industry.

Tyneside-based Future Energy on Thursday became the second energy minnow to fold this winter, triggering a scramble to find a ‘last resort’ supplier willing to take on its customers at the same energy tariff rate.

The regulator ensures that no energy customer is cut off, or loses their credit balance in the event of their supplier going bust, but the second company failure has reignited concern that Ofgem does not put strict enough financial tests in place when it allows new suppliers to come into the market.

A senior industry source, speaking to the Daily Telegraph, predicted that one of the Big Six energy companies would be most likely to take on Future Energy’s customers to curry favour with the regulator,  given the relatively small number of accounts.

In the past, Co-op Energy agreed to take on the 160,000 customers from defunct supplier GB Energy, which collapsed in late 2016 after crippling energy wholesale market price spikes.

Similar gas market price surges late last year have already claimed a small supplier, Better World Energy, which opted to pass its customers to a partner firm Robin Hood Energy.

Rob Salter-Church of Ofgem said there is no reason for Future Energy customers to worry. “We will make sure your energy supplies are secure and your credit balance is protected,” he said in a message to customers.

“Ofgem is working to choose a new supplier as quickly as possible for you. Whilst we’re doing this, our advice is to ‘sit tight’ and don’t switch. You can continue to rely on your energy supply as normal – in fact, the only thing that will change is that you’ll get a new supplier,” he added.

 

Source: http://www.telegraph.co.uk, article by 

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