Two energy companies enter administration

Energy regulator, Ofgem has announced that two energy companies, Green Network Energy and Simplicity Energy have entered administration.

The companies have over 410,000 domestic customers as well as business accounts.

Green Network Energy, a medium-sized gas and electricity supplier with about 360,000 customers, has stopped trading, as has smaller firm Simplicity Energy, which has about 50,000 customers.

Under Ofgem’s safety net, the energy supply of Green Network Energy’s and Simplicity Energy’s customers will continue and outstanding credit balances of domestic customers will be protected.

Customers of Green Network Energy and Simplicity Energy will be contacted by their new supplier, which will be chosen by Ofgem.

Philippa Pickford, Director of Retail at Ofgem, said “Green Network Energy and Simplicity Energy 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 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 new tariff.”

Commenting on the collapse of Green Network Energy and Simplicity Energy Peter Earl, Head of Energy at comparethemarket.com, said “The energy market is not immune to the tough environment many businesses are facing as the pandemic continues to take its toll on the economy. Unfortunately, Green Network Energy, Simplicity Energy and their 410,000 combined customers are the latest to be impacted.”

“However, customers should be reassured that their supply of energy and credit balance will be protected, since energy is an essential utility. They do have options though and once they have made contact with their new supplier, they can look around the market to find a supplier, service and price that works for them.”

Natalie Hitchins, Head of Home Products and Services at Which?, said “Customers of Green Network Energy and Simplicity Energy will understandably be concerned about what this means for their energy supply and their bills, especially those facing financial difficulties due to the pandemic. There is no need for customers to worry about their gas or electricity supply though, as this will continue as usual while the regulator appoints a new provider to take over.”