Customers left in lurch after Iresa collapses

ALMOST 100,000 energy customers have been left in limbo as Britain’s cheapest energy supplier collapsed yesterday after months of poor service and more than 2,000 complaints to the ombudsman this year alone.

Iresa Energy, which is also the country’s most complained about energy supplier, is the latest casualty of fastrising energy costs that have forced up standard energy tariffs in the months since the “Beast from the East” ripped through the energy market.

The company has had a lengthy, public battle with the regulator over its poor customer service and billing. At one point, in April and May, the ombudsman was receiving about 450 complaints a month from Iresa customers.

The level of fury emerged after Ofgem threatened to close Iresa and blocked the firm from taking on further customers, raising questions over whether the regulator should have acted sooner.

“This is yet another consequence of Ofgem allowing anyone with £50 and a credit card to start an energy company,” said Doug Stewart, the chief executive of rival upstart Green Energy.

Ofgem has urged customers to “sit tight and wait” while it finds an energy company willing to take on Iresa’s clients, which it expects to be in place by the end of next week. Households have been assured that they will not be cut off, but they may end up paying higher rates for their energy if Ofgem cannot find a replacement willing to offer rockbottom rates for gas and electricity.

Energy industry bosses are understood to be wary of taking on angry customers who expect low energy rates and are adept at switching supplier to find them.

However, some are said to be interested in “currying favour with the regulator” by making the process as simple as possible, one energy boss said.

If necessary, the regulator has the power to appoint a “supplier of last resort”, which had not volunteered for the job.