Neon Reef and Social Energy Supply cease trading
Neon Reef Ltd supplied about 30,000 domestic electricity customers, and Social Energy Supply Ltd had about 5,500 domestic customers.
Under Ofgem’s safety net, customers’ energy supply will continue and funds that domestic customers have paid into their accounts will be protected, where they are in credit. Domestic customers will also be protected by the energy price cap when being switched to a new supplier.
Customers of these suppliers will be contacted by their new supplier, which will be chosen by Ofgem.
Ofgem’s advice to customers of the bust suppliers is to wait until a new supplier has been appointed and been in contact before looking to switch to another energy supplier. It suggests that households take a meter reading ready for when the new supplier gets in touch.
Neil Lawrence, director of retail at Ofgem, said: “Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.
“I want to reassure affected customers that they do not need to worry: under our safety net we’ll make sure your energy supplies continue. If you have credit on your account the funds you have paid in are protected and you will not lose the money that is owed to you.
“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. 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 tariff.
“Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available.”
A huge spike in wholesale gas prices has led to the collapse of numerous small providers in the past three months. These include Avro Energy, Utility Point, People’s Energy, PfP Energy, Green Supplier and MoneyPlus Energy.
Bluegreen Energy went into administration earlier this month, followed by Omni Energy, MA Energy, Zebra Power, and Ampoweruk.