Surging energy and fuel costs push inflation to near-decade high
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A rise in wholesale gas prices has led to a carbon dioxide shortage in the UK, dropping the UK into an energy crisis. Lots of energy firms, such as Utility Point, Bulb Energy, People’s Energy and now Orbit Energy and Entice Energy have struggled to get through the crisis and gone into administration. In total 10 energy suppliers have gone bust this month alone, leaving their roughly 176,500 customers unsure of what to do next. So, what are you supposed to do if your energy company collapses? Here’s why you shouldn’t switch suppliers.
In the last few months, a huge number of UK energy companies have gone bust, thanks to the price of wholesale gas rising by over 250 percent since the start of 2021.
Energy firms that buy their own gas on the wholesale market promised to sell gas to customers for less than it is now costing them to buy.
One of the biggest UK energy firms to collapse so far is Bulb Energy, which has been given funds by the Treasury to allow it to operate while the firm looks for a solution.
Today, the Office of Gas and Electricity Markets announced via Twitter that Orbit Energy and Entice Energy will both cease to trade.
A statement on Orbit’s website says: “Orbit Energy Limited is ceasing to trade. Ofgem, the energy regulator, is appointing a new supplier for its customers.
“Customers need not worry, their supplies are secure and funds that domestic customers have paid into their accounts will be protected if they are in credit.”
You might think the best thing to do is switch suppliers, but this is not the advice Ofgem is giving.
Orbit’s statement continued: “Ofgem’s advice is not to switch, but to wait until they appoint a new supplier for you.
“This will help make sure that the process of handing customers over to a new supplier and honouring domestic customers’ credit balances, is as hassle-free as possible for customers.
“Ofgem, the energy regulator, is appointing a new supplier for its customers.”
Why you shouldn’t switch energy supplier
No matter what company you’re with, you should always take Ofgem’s advice when the supplier goes bust.
The Ofgem site advises taking the following three steps:
Take a meter reading, sit tight and don’t switch.
You will continue to move to your chosen supplier if you already have a switch in progress.
You don’t need to do anything. Your supply won’t be disrupted and it should only take us a few days.
The Ofgem advice reads: “Ofgem’s safety net will protect your supply and any credit balance.
“If Ofgem finds you a new supplier, your new supplier will contact you directly.
“In exceptional circumstances, we may ask the Court to appoint an administrator to run your existing supplier rather than move you to a new one.
“If this happens, your existing supplier will contact you about this and explain what is happening – you will be free to switch to another supplier as you wish and your credit balance will be protected.”
Finally, the new supplier will contact you.
When this happens, Ofgem advises asking to be put on their cheapest tariff or shop around and switch if you want to – you won’t be charged exit fees.
The site adds: “They’ll also explain how they will manage your account balance, including any credit refunds.”
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