Ninth Energy Supplier Goes Under
Economy Energy joins the list of suppliers gone bust
Economy Energy, a gas and electricity supplier, has gone into administration following a failed search for funding.
Around 235,000 of their former customers will be to be moved to a different supplier. This is the 9th instance of a supplier going bust in the past 12 months.
Economy Energy had recently been ordered by regulator Ofgem to improve its customer service and address its billing and payment issues, including instances where they were requesting one-off payments and were increasing customer’s direct debits. The supplier then fell into deeper trouble when it was banned from taking on new customers as its customer service ratings were not up to standard.
A new supplier will be chosen by Ofgem to take on Economy Energy’s customers, much like the past 8 supplier shutdowns which have occurred.
With all of the recent supplier collapses, a pattern has started to emerge. Usually it starts with a litany of customer complaints and/or potential signs of financial issues.
As an example, missed renewable payments to Ofgem were an early sign of issues with both Spark and Economy Energy before they ultimately collapsed.
But don’t panic – it’s not something you need to be looking out for. If your supplier does go bust then Ofgem has measures in place to ensure you will never be cut off from your energy supply, and you will be moved to a new supplier.
If you do not like the new supplier which has been designated, you can switch to a new one yourself very easily through a comparison site.
Customers of Economy Energy will not be affected and prepayment can be topped up as usual. All credit balances which are outstanding will also be protected.
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.
"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.
You can also take a meter reading now, which you can pass on to your new supplier to ensure your bills are accurate.