Breeze Energy stops trading
Breeze Energy, a gas and electricity supplier with around 18,000 domestic customers, has ceased to trade.
This is the 15th energy supplier which has failed in the past two years, affecting over a million customers.
Under regulator Ofgem’s safety net, energy supply will continue and outstanding credit balances will be protected.
Ofgem will choose a new supplier to take on all of Breeze Energy’s customers.
But for now, the regulator is advising Breeze Energy customers to sit tight and not switch to another energy supplier until a new one has been appointed and been in contact.
However, customers should take a meter reading now, ready for when the new supplier gets in touch. Ofgem says this will make the process of transferring customers over to the chosen supplier, and paying back any outstanding credit balances, as smooth as possible.
Philippa Pickford, Ofgem’s director for future retail markets, said: “Breeze Energy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and domestic customers’ credit balances are protected.
“Ofgem will now choose a new supplier for you and 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.”
Ofgem added that once a new supplier has been in contact, customers can ask to be put on the 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.
Peter Earl, head of energy at comparethemarket.com, said: “Ofgem urgently need to stem the burst main of supplier failures. Breeze is the 15th domestic supplier to fail since the start of 2018, but without more stringent checks on suppliers there will likely be a further collapse in the near future.
“With more than one million households affected by supplier failures, Ofgem’s proposed improved financial checks and more rigorous testing for existing energy providers cannot be implemented soon enough. With just a week to go before Christmas, Breeze Energy customers can take some comfort that they will still be able to turn the lights and heating on, with Ofgem taking immediate action to appoint a new supplier.”