Sixth Energy supplier collapses in four months

Our Power, an energy supplier with about 38,000 domestic customers, has ceased to trade.

Under Ofgem’s safety net, the energy supply of Our Power’s customers will continue and pre payment 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 Our Power’s customers as quickly as possible. This supplier will contact these customers shortly after being appointed.

Philippa Pickford, Ofgem’s director for future retail markets, said “Our message to energy customers with Our Power 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.”

Peter Earl, Head of Energy at comparethemarket.com, said “This is the sixth collapse of an energy provider in under four months, showing just how poorly smaller companies are coping with a rise in wholesale prices. Our calculations suggest that over 700,000 customers have been affected by these failures.

“However it is reassuring to see Ofgem has clear processes in place to protect customers of failed energy suppliers, including Our Power, the latest to go under. The volume and regularity of recent energy company collapses is concerning but the majority of companies should have the financial stability to weather the storm. If you are on a good value fixed tariff with a smaller energy supplier, then we suggest you hold your nerve and stay with that provider for the duration of their deal, as your supply is protected even if your company doesn’t survive.”