Brilliant Energy Supply, an energy supplier with about 17,000 domestic customers, has ceased to trade.

Under Ofgem’s safety net, the energy supply of Brilliant Energy’s customers, including those supplied under a ‘white label’ arrangement with Northumbria Energy, will continue and the outstanding credit balances of domestic customers will be protected.

Ofgem will choose a new supplier to take on all of Brilliant Energy’s customers as quickly as possible. This supplier will contact these customers shortly after being appointed.

Ofgem’s advice to Brilliant Energy’s customers in the meantime is:

  • Do not switch to another energy supplier.
  • Take a meter reading ready for when your new supplier contacts you.

This will make the process of transferring customers over to the chosen supplier, and paying back their outstanding credit balances, as smooth as possible.

Philippa Pickford, Ofgem’s director for future retail markets, said “Our message to energy customers with Brilliant Energy is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected.”

“Ofgem will now choose a new supplier for you, ensuring you get the best deal possible. Whilst we’re doing this our advice is to ‘sit tight’ and don’t switch. 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 new tariff.”

“We have seen a number of supplier failures over the last year and our safety net procedures are working as they should to protect customers.”

Brilliant Energy also supplied customers of Northumbria Energy under a ‘white label’ arrangement and is the third consumer energy company to enter insolvency this year.

Commenting on the Brilliant Energy collapse, Gillian Guy, Chief Executive of Citizens Advice, said “Brilliant Energy and Northumbria Energy customers’ gas and electricity will continue as normal and Ofgem will appoint a new supplier soon. Customers should take a meter reading and wait until a new supplier is appointed before switching, otherwise they risk losing any potential refunds.

“The failure of another supplier is a clear sign Ofgem needs to urgently move forward with its reforms to better monitor existing companies and take action earlier when problems arise.”

Peter Earl, Head of Energy at comparethemarket.com, said “Brilliant Energy is the 11th supplier to collapse in the last year, further demonstrating how smaller energy providers have struggled with the spike in wholesale prices. As the energy market becomes increasingly competitive, many customers have voted with their feet and switched to new providers, but the demise of yet another energy company may dent people’s confidence in backing challenger energy brands. With a quarter of all customers now supplied by small and medium-sized suppliers, it is vital that Ofgem’s review into testing new suppliers ensures that firms are stress tested adequately.  Brilliant Energy’s collapse will be of concern to those 17,000 households it serves, but remember that Ofgem has clear processes in place to protect them. Customers should not see any immediate impact and will be moved on to a supplier that is able to take on the extra capacity.”