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Gnergy goes bust

Paloma Kubiak
Written By:
Paloma Kubiak

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.