Written by: Keith Tully
Reviewed: Wednesday 9th January, 2019
A small gas and electricity supplier based in Coventry has gone out of business after the failure of efforts to secure funding that may have rescued it.
Economy Energy becomes the latest in a series of small scale energy supply companies to become insolvent in the UK over the course of the past year.
The company’s collapse leaves roughly 235,000 customers unsure of how their energy supplies and the associated payment processes will be resolved.
Statements on Economy Energy’s website make clear that the business has ceased to trade and explained that the energy industry regulator Ofgem will step in and appoint new suppliers to customers affected.
“Ofgem’s advice is not to switch, but to sit tight and wait until the new supplier has been appointed,” the company’s website says.
“This will help make sure that the process of handing customers over to a new supplier, and honouring credit balances, is as hassle free for customers as possible.”
Economy Energy customers are also encouraged to visit Ofgem’s website or call Citizens Advice if they’re unsure how best to proceed in dealing with their energy supply situation going forward.
Ofgem has promised to protect anyone with a credit balance with Economy Energy and explained that any customers with a prepayment energy meter can top it up as normal without concern.
“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,” said Philippa Pickford, Ofgem’s director for future retail markets.
“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.”
Efforts to rescue Economy Energy from the prospect of collapse began last month with its financial position having become perilous in the preceding weeks.
Ofgem recently ordered the company to improve and expand its customer service and billing procedures under threat of having its license to provide energy supply services in the UK revoked entirely.