Energy crisis continues as two more companies follow Bulb into administration
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Another two energy suppliers have collapsed into administration, taking the total number of failures to 25 since August.
In the latest development of an ongoing crisis in the UK’s energy market, Mansfield-based Entice Energy and London supplier Orbit Energy have become the latest victims of the rapid rise in gas prices in recent months.
Entice Energy, which comprises both Entice Energy Supply Limited and Simply Your Energy Limited, and Orbit Energy Limited, are to cease trading.
Entice Energy supplies around 5,400 domestic customers and Orbit Energy supplies around 65,000 domestic customers.
Under Ofgem’s safety net, customers’ energy supply will continue.
Funds that domestic customers have paid into their accounts will be protected, where they are in credit. Domestic customers will also be protected by the energy price cap when being switched to a new supplier.
Customers of Entice Energy and Orbit Energy will be contacted by their new supplier, which will be chosen by Ofgem.
In recent weeks there has been an unprecedented increase in global gas prices which is putting financial pressure on suppliers. Ofgem says it is working with Government and industry to make sure customers continue to be protected this winter.
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. Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. 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 tariff.
“Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available.”
Just this week Bulb, which has around 1.7 million customers and is the seventh-largest energy firm in Britain, announced that the firm would be placed into administration.
Due to its size, energy regulator Ofgem has applied to put Bulb into special administration, meaning if the application is successful it will be run by administrator Teneo until a potential buyer is found, or until its customers leave.
Normally Ofgem would let a firm fail and move its customers onto a new supplier.
Ofgem’s advice to affected customers is to:
Wait until a new supplier has been appointed and you have been contacted by them in the following weeks before looking to switch to another energy supplier.
Take a meter reading so you have it ready for when your new supplier contacts you.
This will make the process of transferring customers over to the chosen supplier, and honouring any funds that domestic customers have paid into their accounts, where they are in credit, as smooth as possible.