One Select latest small energy supplier to cease trading
Ofgem said it will choose a new supplier to take on firm’s 36,000 customers “as quickly as possible”
One Select has become the latest small energy supplier to cease trading this year amid continued turmoil in the sector.
The firm has about 36,000 customers and regulator Ofgem said it will choose a new supplier to take on its customers “as quickly as possible”.
Its collapse comes after rival firms Spark Energy, Extra Energy, Future Energy, National Gas and Power, Iresa Energy, Gen4U and Usio Energy have all gone bust in 2018.
Philippa Pickford, Ofgem’s interim director for future retail markets, said: “Our message to energy customers with One Select is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected.
“Ofgem will now choose a new supplier for you, ensure you get the best deal possible. 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.
“We have seen a number of supplier failures this year and our safety net procedures are working as they should to protect customers.”
Under Ofgem’s safety net, the energy supply of One Select’s customers will continue as normal and outstanding credit balances of domestic customers will be protected.
The energy market has been hit by stinging regulation, including a Government-enforced price cap on standard variable tariffs amid anger over rising bills.
The regulator has recently tightened up rules for new energy suppliers entering the market.
New entrants will have to show they have adequate financial resources and can meet customer service obligations.
Ofgem said the tests should ensure new entrants are robust while encouraging competition and innovation in the market.
News Source: Insider