Economy Energy, an energy supplier with about 235,000 domestic customers, has ceased to trade.
Under Ofgem’s safety net, the energy supply of Economy Energy’s customers will continue and prepayment 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 Economy Energy’s customers as quickly as possible. This supplier will contact these customers shortly after being appointed.
Ofgem’s advice to Economy Energy’s customers in the meantime is:
Do not switch to another energy supplier.
Take a meter reading ready for when your new supplier contacts you.
This will make the process of transferring customers over to the chosen supplier, and paying back their outstanding credit balances, as smooth as possible.
Philippa Pickford, Ofgem’s director for future retail markets, said: “Our message to energy customers with Economy Energy 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, ensure 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.”
Ofgem previously opened three enforcement investigations into Economy Energy, two of which will now close. The investigation into whether Economy Energy, E and Dyball Associates have infringed Chapter I of the Competition Act 1998 will remain open.
Last week, Ofgem issued a provisional order to Economy Energy, which prevented the supplier from taking on new customers.