Iresa energy collapses: what you need to know
The collapse comes just a month after Iresa, which has less than 100,000 customers, faced an extension on its ban from taking on new users after it failed to resolve service issues.
Energy regulator, Ofgem, said energy supply to Iresa customers will continue as normal, and any outstanding credit balances will be protected by its safety net in these rare scenarios.
A new supplier will be chosen to take on Iresa’s existing customers, such as was the case with Co-Operative Energy which took over GB Energy accounts after it went bust in 2016.
But for now, Ofgem advises Iresa customers to stay put and not switch supplier. It’s also a good idea to jot down your meter reading today.
Once a new supplier is chosen, they will be in touch with customers about paying back any outstanding credit balances. You should also ask it to be put on their cheapest deal as there is a chance customer bills may go up as a result of the move.
This is because you will be put on a special ‘deemed’ contract – one you haven’t chosen – but you are free to shop around for a better energy tariff and you won’t be charged exit fees.
Rob Salter-Church, Ofgem’s interim executive director for consumers and markets, said: “If you are an Iresa customer there is no need to worry as we will make sure your energy supplies are secure and your credit balance is protected.
“Ofgem is working to choose a new supplier as quickly as possible for you. While we’re doing this our advice is to ‘sit tight’ and don’t switch. Your energy supply will not be affected and will continue as normal – the thing that will change is that your energy will come from a new supplier.”
Related: See YourMoney.com’s Record numbers switch to small energy firms: how safe are they? for more information.