Another One bites the dust

Collapse hits 36,000 energy customers

EIGHT British energy companies have now gone bust this year, hitting more than 700,000 consumers.

The latest to collapse was

One Select, which went out of business yesterday, just days after being named worst for customer service in a Citizens Advice poll.

The gas and electricity supplier lasted less than two years and joins a list of shame of small firms which have failed to make the grade in the last few months. The company had 36,000 customers who will now have to wait and see who their new supplier will be. The good news is that the energy watchdog will arrange for a new firm to pick up the business. Philippa Pickford, of Ofgem, 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. While we’re doing this our advice is to ‘sit tight’ and don’t switch.” The list of gas and electricity companies that have collapsed in 2018 includes Spark Energy, Extra Energy, Future Energy, National Gas and Power, Iresa Energy, Gen4U and Usio Energy.

The energy market has been hit by rising wholesale prices as well as more red tape and tougher regulations.

That includes a Government-enforced price cap on standard variable tariffs.

The watchdog plans to make it harder for new energy suppliers to enter the market to cut the number of crashed firms. New firms will have to show they have adequate financial resources and can meet customer service obligations.

Peter Earl of Comparethemarket, said: “This cannot come quickly enough.”