Customers of Avro Energy and Green Supplier Limited reassured by Ofgem that they will automatically switch to new supplier
Customers of two failed energy firms are being reassured that their supply will be unaffected and another supplier will be lined up for them.
Energy firms Avro Energy and Green Supplier Limited had some 835,000 domestic gas and electricity customers when they became the latest firms to exit the market as rising prices forced them out.
Regulator Ofgem is now reassuring those households that it will find all customers a new supplier thanks to its safety net system.
Once they are contacted by that newly-appointed supplier they can then look at prices and deals with that company or decide to switch to another firm.
Ofgem is asking people to wait until initial contact has been made before they try to switch suppliers.
It also suggests people take a meter reading.
Avro and Green’s failures come after energy companies PFP, MoneyPlus, Utility Point and People’s Energy all exited the supply market in just over two weeks.
Last month HUB Energy, which had just 6,000 customers, also stopped trading.
Due to rising prices companies have promised to sell gas to customers for a less than it currently costs to buy from producers, putting them in a difficult position if they did not buy ahead as a form of insurance.
Like when other companies fail, Ofgem said that households can keep using gas and electricity as before while the regulator tries to find them a new supplier.
“I want to reassure customers of Avro Energy and Green Supplier Limited that they do not need to worry,” said Ofgem director of retail Neil Lawrence.
“Under our safety net we’ll make sure your energy supplies continue. If you have credit on your Avro Energy or Green Supplier Limited account this is protected and you will not lose the money that is owed to you.”
If a customer opts to switch from the newly-chosen supplier, no exit fees will need to be paid.