Ofgem has confirmed that Solarplicity Supply, an energy supplier with around 7,500 domestic customers and less than 500 business customers, has ceased to trade.
Under Ofgem’s safety net, the energy supply of Solarplicity’s customers will continue and prepayment meters can be topped up as normal. The outstanding credit balances of domestic customers will be protected.
Ofgem will choose a new supplier to take on all of Solarplicity’s customers. This supplier will contact these customers shortly after being appointed.
Ofgem’s advice to Solarplicity’s customers in the meantime is to:
- Not switch to another energy supplier until a new one has been appointed and you have been contacted by them in the following weeks.
- 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 any outstanding credit balances, as smooth as possible.
Philippa Pickford, Ofgem’s director for future retail markets, said “Solarplicity customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and domestic customers’ credit balances are protected. Ofgem will now choose a new supplier for you and 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.”
In late July 2019, Toto Energy acquired customers from Solarplicity Supply. Toto Energy has been in contact with customers that have been switched to them. Ofgem’s process only applies to those customers that remained with Solarplicity.
Gillian Guy, Chief Executive of Citizens Advice, said “Solarplicity is the 12th domestic energy company to collapse in the last two years. Our research shows these failed companies left behind £172 million in unpaid industry costs, which will likely be picked up by other consumers through higher bills.”
“The collapse of these firms revealed a major gap in consumer protections. The administrators of failed firms have not been subject to the same debt collection rules as energy suppliers. The government must take action and fix this problem.”