OneSelect goes bust leaving 36,000 customers without an energy supplier
It is the seventh small energy supplier to go under in 2018, compared to only two in the nine years to January this year.
Regulator Ofgem announced today that the Reading-based company, which entered the energy market for households in 2016, has ceased trading.
Customers must now wait for Ofgem to choose a new supplier for their homes, with a spokesperson for the regulator telling The Sun that this will happen within the next two weeks at the latest, but could happen within the next four to five days too.
But under its safety net scheme, no customers will be left without energy and Ofgem is urging customers to not panic and try switching themselves.
Any outstanding credit balances will also be protected, with Ofgem advising customers to take a meter reading and wait for the new supplier to contact them.
Once they've been contacted, customers should ask to be put on the cheapest deal or they can shop around for a cheaper deal instead.
Customers won't be charged exit fees for switching away from their new supplier, Ofgem said.
Philippa Pickford, Ofgem’s interim director for future retail markets, said: "Our message to energy customers with OneSelect 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."
Customers who have questions should visit Ofgem's website at www.ofgem.gov.uk/ofgem-safety-net.
Or if they need additional support, call Citizens Advice on 03454 04 05 06 or email them via their webform.
Is it safe to switch to a small energy provider?
Research from Which? has found customers with smaller and medium sized firms like Utility Warehouse, Flow Energy and Octopus Energy are much happier than those with the major firms – and could save a whopping £333 a year by switching.
The biggest risk of choosing a small provider – like OneSelect – is that it goes bust.
But remember that if the firm does go under you won't be cut off, and Ofgem will try and get a new supplier in place as quickly as it can.
Once it has done this, the new firm will contact you – it doesn't have to honour the deal you were on with defunct firm – but under Ofgem rules any credit you have on your account is protected.
If you're unhappy with the new supplier's offer you are free to shop around for a new deal and switch – you won't have to pay any exit fees to leave.
OneSelect is only the latest small energy firm to go bust in recent months – in mid-November, Extra Energy did the same.
It was then followed by Spark Energy Supply only a few days later.
As a result, Ofgem has announced proposals of stricter rules for new energy suppliers entering the market to protect consumers, and they're expected to come into effect in the late spring next year.
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