Our Power, an energy supplier with about 31,000 domestic customers, has ceased to trade.
The lack of a proper customer management system prevented the addition of news customers, as well as the efficient billing of existing ones, according to sources.
This coupled with rising wholesale prices squeezed margins while investors, seeing a string of bankruptcies in the sector, were reluctant to provide the cash needed to keep Our Power afloat.
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.”
Learn more about the UK’s need for a policy shake up here.