You are here: Home - Household Bills - News -

Gnergy goes bust

0
Written by:
19/03/2020
Gnergy Ltd has become the latest small supplier to fail, leaving thousands of customers in limbo.

The gas and electricity supplier with around 9,000 domestic customers, has ceased to trade. In the last two years, more than a dozen small suppliers have now gone into administration.

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 Gnergy’s customers.

But for now, the regulator is advising 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: “Gnergy 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.”

Will Owen, energy expert at Uswitch.com, said: “Gnergy has been in a precarious position for a while, and so its exit from the market is not a surprise.

“It’s unlikely that the current situation with the coronavirus will have played a part in Gnergy’s demise. While it’s always a difficult time for the employees of any energy company when it exits the market, this is a particularly hard blow for Gnergy’s team given the current economic situation.

“Customers potentially face being moved from a small energy provider to a much larger one, and will want to be reassured that they are getting good value for money and excellent service whoever the new supplier is.”

Owen added that once customers have been moved over, they should carry out a price comparison to see if switching to another supplier will offer better value for money. Switchers won’t be charged exit fees for moving to another supplier.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Landlords banned from evicting renters affected by coronavirus

The government has announced a package of measures to protect renters and landlords affected by coronavirus.

Close