OneSelect is latest energy provider to go bust
It is the tenth energy provider to cease trading this year.
In a statement on OneSelect’s website on Monday, the company said that Ofgem, the energy regulator, is in the process of appointing a new supplier for its 36,000 customers.
“Customers need not worry, their supplies are secure and credit balances are protected.
“Ofgem’s advice is not to switch, but to sit tight and wait until the new supplier has been appointed. This will help make sure that the process of handing customers over to a new supplier, and honouring credit balances, is as hassle free for customers as possible,” the company explained.
Although a number of energy companies have folded this year, Emma Bush, energy expert at uSwitch.com, pointed out that the Ofgem safety net means their customers have “nothing to fear”.
“Their energy supplies will continue uninterrupted and their credit balances are protected,” she added.
The news follows OneSelect’s ranking in bottom position in Citizens Advice’s star rating, which ranks the customer service levels of energy suppliers.
It found that between July and September 2018, OneSelect underperformed across a range of measures including complaints levels, call waiting times, the timeliness and accuracy of billing and whether switches take place on time.
Smaller providers under pressure
OneSelect isn’t alone as a smaller energy supplier that has come under pressure in recent times. November saw the collapse of Spark Energy and Extra Energy.
Bush explained that a handful of suppliers entered the winter period with little room for manoeuvre.
“Unexpectedly high demand, thanks to the ‘Beast from the East’, has helped push up commodity costs, while switching volumes have reached near-record levels.
“Companies which have less capital available, have been struggling to pay policy obligations, or are having problems with internal processes such as billing or collecting payments are therefore going to find conditions challenging in the current environment,” she added.