Despite the business going under, households that use the failed energy supplier should not experience any disruption to their gas and electricity services, according to Ofgem.
The regulator said any Rebel Energy customers will be contacted by their new supplier “in the coming weeks” with more information.
Dan Bates, the firm’s CEO, blamed the failure of his company on wholesale costs in January and February, coupled with the pressure of the cost-of-living crisis on customers, causing “an unexpected forecast cash shortfall” this month.
He posted on LinkedIn: “Regrettably, we have not been able to raise the required capital in the short period of time to secure the future of the business and we are now starting, in conjunction with Ofgem, its Supplier of Last Resort procedure, which ultimately means that Rebel Energy will be going out of business.”
The supplier was under a provisional order in March following a potential breach in rules about renewable energy obligations.
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Ofgem has told customers to wait until a supplier has contacted them before switching to another energy company, and the regulator urged customers to take a meter reading ahead of the contact with the supplier. Citizens Advice suggests taking a photo of the reading for your personal record.
The regulator also reassured customers with credit on their account that the funds will remain protected. But if you owe any money to the supplier, the debt could be passed to an administrator to collect the repayments. An administrator will contact you if that is the case.
Rebel’s announcement comes on the day energy bills soared to £1,849 per year – a rise of £159 on last year.
Ofgem guidance
Tim Jarvis, director general for markets at Ofgem, said: “We are working quickly to appoint new suppliers for all impacted customers. We’d advise customers not to try to switch supplier in the meantime, and a new supplier will be in touch in the coming weeks with further information.
“We have worked hard to improve the financial resilience of suppliers in recent years, implementing a series of rules to make sure they can weather unexpected shocks. But like any competitive market, some companies will still fail from time to time, and our priority is making sure consumers are protected if that happens.”
Alex Belsham-Harris, head of energy policy at Citizens Advice, said: “Don’t try to switch suppliers or cancel direct debits, as this can cause issues, and take a meter reading if you’re able to.
“The Government and Ofgem must ensure customers of Rebel Energy who’ve fallen behind on bills continue to access affordable repayment plans.”
