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Energy Suppliers Going Bust

Energy Suppliers Going Bust

The What and the Why

Another energy firm has gone under – the news that Our Power, a not-for-profit energy supplier has ceased trading means that 13 energy suppliers have now ceased trading since January last year.

Almost 700,000 customers have been affected by suppliers going bust since January 2018. A total of 11 suppliers ceased trading in 2018, five of them in the last quarter, and 2019 has already seen another two go to the wall.

Supplier When did it cease trading? What happened next? Number of domestic customers
Future Energy January 2018 Green Star Energy appointed SoLR 10,000
Flow Energy May 2018 Acquired by Co-Operative Energy 130,000
Gen 4U July 2018 Octopus Energy appointed SoLR 500
Iresa July 2018 Octopus Energy appointed SoLR 95,000
Affect Energy August 2018 Acquired by Octopus Energy 20,000
Electraphase August 2018 Administration. All customers switched Under 100
Usio Energy October 2018 First Utility appointed SoLR 7,000
Snowdrop Energy October 2018 Transferring customers to Nabuh Energy 6,000
Extra Energy November 2018 Scottish Power appointed SoLR 108,000
Spark Energy November 2018 Ovo Energy appointed SoLR and acquired Spark Energy Ltd. operating group 290,000
One Select December 2018 Together Energy appointed SoLR 33,000
Economy Energy January 2019 Ovo Energy appointed SoLR 230,000
Our Power January 2019 Utilita appointed SoLR 38,000
Brilliant Energy March 2019 SSE appointed SoLR 17,000

 

The good news for anyone affected by a supplier going bust is that Ofgem has safeguards in place that ensure no customer are left without gas and electricity at any point. The regulator will automatically transfer all customers to a new supplier, known as a supplier of last resort (SoLR).

If you’re ever in the situation where your supplier goes bust, the advice is to sit tight until Ofgem appoints a new supplier. Once this new supplier has taken over your contract, you should then shop around for a better deal, as it’s unlikely the SoLR will put you on a competitive deal, and may even place you on deemed rates, which are among the most expensive.

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