Ofgem protects customers of failed supplier Economy Energy
Press release
- Publication date
- Industry sector
- Supply and Retail Market
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.
Updates are available from our website or through our twitter feed @ofgem.
Customers who have questions should visit the FAQs on our website. Or if they need additional support, call Citizens Advice on 03454 040 506 or email them via their webform. Alternatively, get in touch through Ofgem’s facebook or twitter feed @ofgem.
Notes to editors
- Economy Energy’s customers should take meter readings today and wait until their new supplier contacts them. Once they’ve been contacted, customers can ask to be put on their new supplier’s cheapest deal or shop around for a better deal from another supplier. They won’t be charged exit fees for switching away from their new supplier.
- For non-smart prepayment meters, customers can continue to use their top-up devices until they are replaced by the appointed supplier.
- For smart prepayment meters, you will be able to top up your meter with Economy Energy for a short while. Economy Energy will then send an electronic message to your meter to turn it into credit mode. This will enable you to take a continual supply without the need to top up. Once a new supplier has been appointed, they will be in contact with you to discuss whether you want to take your supply with them through a prepayment tariff and they will set this up for you.
- Ofgem's safety net will make sure customers will always have an energy supply, credit balances are protected and that the process in moving over to the appointed supplier is as smooth and hassle free as possible.
Further information
For media, contact:
Michelle Amos: 0207 901 1881
Media out of hours mobile: 07766 511470 (media calls only)
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