One Select, an energy supplier with about 36,000 domestic customers, has ceased to trade.
Under Ofgem’s safety net, the energy supply of One Select’s customers will continue as normal. The outstanding credit balances of domestic customers will be protected.
Ofgem will choose a new supplier to take on One Select’s customers as quickly as possible. This supplier will contact these customers shortly after being appointed. Ofgem’s advice to One Select’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 interim director for future retail markets, said “Our message to energy customers with One Select 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, ensure 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 this year and our safety net procedures are working as they should to protect customers.”
The news follows finding that that One Select finished bottom in the Citizen’s Advice customer service table which was announced earlier today.
Commenting on the collapse of One Select, Peter Earl, Head of Energy at comparethemarket.com said “For one supplier to collapse is a misfortune. When a second fell – concern began to mount. A third energy company going bust within the space of three weeks, as has happened today with One Select, speaks to a systemic issue. It is clear that, amongst other things, the recent increases in the wholesale price of gas and electricity has crippled some companies. Ofgem’s review into testing new suppliers cannot come quickly enough. We need this steady flow of energy company collapses to be stemmed, or it will become a tide and reduce people’s confidence in challenger energy providers.”
“It is important to remember that Ofgem has a well-oiled plan for these instances of failed suppliers. Customers should not see any immediate impact and will be protected by being moved on to a supplier that is able to take on the extra capacity.”