The meters may be smart, the supplier not so

  oresome 17:40 27 Nov 2016
Locked

One of the new entrants into the energy supply market has gone bust.

GB Energy Supply, which had one of the cheapest fixed rate tariffs and around 160,000 customers has ceased trading.

Another factor to take into consideration when comparing prices and service levels, how financially sound is the company.

  Bazzaman 18:08 27 Nov 2016

I wonder what will happen to the existing customer contracts. Ofgem has (rightly) indicated that another provider will take over the customers, but will they honour the contracts? Is it possible that Ofgem will somehow tout the book of contracts around and allow the book to go to the provider that is either prepared to honour the contracts or, at least, offer the best deal (just to get the customers on their books)

I know when one of the Icelandic banks (Kaupthing) went bust, ING Direct took over the book and honoured the existing fixed term rates. I know this as my wife had a fixed term depo with Kaupthing at a market leading rate (at 7%p.a. I seem to recall) and it was switched to ING Direct and she didn't lose out at all.

  bumpkin 19:17 27 Nov 2016

Who supplies the energy in the mean time?

  Forum Editor 08:08 28 Nov 2016

"I wonder what will happen to the existing customer contracts."

Ofgem will appoint a new supplier, and customers will have to enter into new agreements. You can't force a new supplier to honour the terms of contracts that were entered into by another company, especially when it was the terms of those contracts which forced that company out of business when wholesale prices rose.

Consumers cannot be protected against every element of risk in life.

  Forum Editor 08:16 28 Nov 2016

bumpkin

"Who supplies the energy in the mean time?"

Ofgem guarantees continuity of supply - the power consumed will be payable to whichever company is appointed by Ofgem. If customers were in credit with GB Energy Supply their money is safe - Ofgem guarantees those amounts.

  bumpkin 16:11 28 Nov 2016

Thanks, I assume then that the new supplier will work on estimates as all the meters could not have been read.

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