Ofgem announces price cap review as Bluegreen Energy becomes the latest energy supplier to go bust

A review of the methodology for setting the energy price cap has been announced by Ofgem following the unprecedented rise in wholesale costs in recent months.

In a letter to the industry, the regulator’s chief executive Jonathan Brearley also revealed plans to facilitate faster payments to suppliers of last resort and pause all new applications for supply licences for at least six months.

Meanwhile, Bluegreen Energy Services has announced they are the latest energy company that will cease to trade.

The company supplies around 5,900 domestic customers and a small number of non-domestic customers. Under Ofgem’s safety net, customers’ energy supply will continue and funds that domestic customers have paid into their accounts will be protected, where they are in credit. Domestic customers will also be protected by the energy price cap when being switched to a new supplier.

Customers of Bluegreen Energy will be contacted by their new supplier, which will be chosen by Ofgem.

Neil Lawrence, Director of Retail at Ofgem, said “Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.”

“I want to reassure affected customers that they do not need to worry: under our safety net we’ll make sure your energy supplies continue. If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you.”

“Ofgem will choose a new supplier for you and while 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 tariff. ”

“Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available.”