Economy Energy goes bust with 235,000 customers abandoned
Independent supplier Economy Energy has gone bust, less than a week after it was ordered to stop signing new customers, the industry regulator said on Tuesday.
Ofgem confirmed the collapse, saying the energy firm had left 235,000 domestic customers without a supplier.
"Under Ofgem’s safety net, the energy supply of Economy Energy’s customers will continue and prepayment meters can be topped up as normal. The outstanding credit balances of domestic customers will be protected," Ofgen said in a statement, adding that it would choose a new supplier "as quickly as possible".
It advised customers not to switch to another energy supplier and take a meter reading.
"This will make the process of transferring customers over to the chosen supplier, and paying back their outstanding credit balances, as smooth as possible," Ofgem said.
Citzens Advice chief executive Gillian Guy said the failure of energy suppliers was becoming "an all too familiar story".
"Ofgem’s moves to tighten up the licensing rules should address the problem of unprepared companies coming into the market. But the continued failure of suppliers shows there are firms operating that require the regulator’s urgent attention,” she said.
Ofgem previously opened three enforcement investigations into Economy Energy, two of which will now close. The investigation into whether Economy Energy, E and Dyball Associates have infringed Chapter I of the Competition Act 1998 will remain open.
In the past year, several small energy suppliers have gone under, including Spark Energy, Extra Energy, Future Energy, National Gas and Power, Iresa Energy, Gen4U, One Select and Usio Energy.