Saturday, November 27, 2021

Two energy suppliers went bankrupt, affecting a total of 35,500 customers

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Customers of both companies are handed over to a “supplier of last resort” and could raise their energy bills

Green company Neon Reef, which served around 30,000 households, and smart energy provider Social Energy Supply, which served around 5,500 households, both announced that they had ceased trading on Tuesday.

Two other energy providers went bankrupt due to the energy price crisis and threw a further 35,500 households into limbo.

Both companies’ customers must be turned over to an Ofcom appointed “supplier of last resort”, which could significantly increase their energy bills if they do not switch to a cheaper tariff.

The two energy groups recently went under due to the increased gas wholesale prices. An energy price cap that protects consumers from drastic increases in bills has made many small energy companies stay afloat because they cannot pass the rising costs on to their customers.

Customers are asked to wait for a new supplier to contact you and to “generate a meter reading when your new supplier contacts you”.

Social Energy Supply has confirmed that trading will cease. An online statement added, “Ofgem, the energy regulator, is appointing a new supplier for all of our utility customers.

“Customers don’t have to worry, their deliveries are secure and funds that customers have deposited into their accounts are protected when they are on credit.”

Neil Lawrence, Director of Retail at Ofgem said, “Ofgem’s number one priority is protecting customers. We know this is a worrying time for many people and the news that a supplier is going out of business can be worrying.

“I would like to assure affected customers that they do not have to worry: under our safety network, we will take care of your energy supply. When there is funds on your account, the funds you deposit are protected and you will not lose any money owed to you.

“Ofgem will select a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and not change in the meantime. As usual, you can rely on your energy supply. We will inform you when we have selected a new provider who will then contact you regarding your tariff.

“Any customer who has concerns about paying their energy bill should contact their supplier for access to the available support services.”

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