TWO small energy suppliers have gone bust leaving a total of 35,500 customers without a supplier. Neon Reef and Social Energy Supply have both announced that they have ceased trading today. It makes the two suppliers the latest casualties of the ongoing energy crisis that has been wiping out businesses at an alarming rate since […]
TWO small energy suppliers have gone bust leaving a total of 35,500 customers without a supplier.
Neon Reef and Social Energy Supply have both announced that they have ceased trading today.
It makes the two suppliers the latest casualties of the ongoing energy crisis that has been wiping out businesses at an alarming rate since the end of August this year.
A grand total of 22 suppliers are known to have collapsed in the past few months alone.
Before today’s losses, CNG Energy was the latest to be hit, as it ceased trading almost two weeks ago.
Just a day prior to that, three other energy firms went into administration too, hitting 23,000 customers in one massive blow.
It’s because wholesale gas prices rose 250% since January, and this has formed the strain on the UK energy industry that we’ve seen in recent months.
Suppliers have had to fork out for the costs as the government’s energy price cap limits what they can pass on to customers.
Despite this, households have still seen major hikes on their home bills, all while the cap rose by £139 at the beginning of October too.
Most devastatingly though, it has toppled certain providers.
Customers of the latest failed providers needn’t panic though, as Ofgem will sort new tariffs and protect their current credits where necessary in the meantime.
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.”
Your energy supply won’t be cut off so don’t panic – you don’t need to rush into switching to a new provider either.
The energy regulator, Ofgem, will arrange an interim supplier for you while you wait for a new supplier to be appointed.
That can take around two weeks but you won’t lose any credit in the meantime.
If you’re looking to take care of your finances, Martin Lewis says a sensible step is to take an up-to-date meter reading and you can shop around after you’ve got your new supplier if you wish.
But because prices are so high at the moment, households are being advised not to lock into a new fixed deal just yet.
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