Credit, Collections & Insolvency News
Energy companies, Neon Reef and Social Energy Suppl, have announced they are ceasing to trade, meaning that 21 energy suppliers have collapsed since the start of September.
Neon Reef supplies around 30,000 domestic electricity customers, and Social Energy Supply supplies around 5,500 domestic customers.
Under Ofgem’s safety net, customers’ energy supply will continue and funds that domestic customers have paid into their accounts will be protected, where they are in credit. Domestic customers will also be protected by the energy price cap when being switched to a new supplier.
Customers of these suppliers will be contacted by their new supplier, which will be chosen by Ofgem.
Neil Lawrence, Director of Retail at Ofgem, said “Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.”
“I want to reassure affected customers that they do not need to worry: under our safety net we’ll make sure your energy supplies continue. If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you.
“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your tariff.”
Meanwhile, Price Bailey analysis has suggested that around a third of the domestic energy suppliers are at imminent risk of collapse as wholesale energy prices continue to climb.
With 14 electricity and gas suppliers deemed to be ‘maximum risk” under their credit score’ Matt Howard of Price Bailey said “The energy supply sector is facing complete carnage as we head into the winter months.” “Over a third of suppliers have already gone bust and another third are at imminent risk of going under in the coming months.”
