Energy firm collapses in complaints storm

MORE than 200,000 Economy Energy customers have been left in limbo after the supplier went bust yesterday.

The firm is the ninth small energy provider to collapse in the last 12 months.

It was banned from taking on new business last Friday after Money Mail exposed its customer service failings.

We had been bombarded with complaints from aggrieved customers who had been overcharged and then denied refunds after moving to a new supplier.

Some Money Mail readers, who rely solely on their pension, had been left waiting six months for refunds worth as much as £800.

Energy watchdog Ofgem advises customers to ‘sit tight’ until it has appointed a new firm to take over the supply. It promises the Coventry-based supplier’s 235,000 customers will not lose power and credit balances will be protected.

You should take a meter reading today to give to the new firm.

Mark Todd, the director of comparison site energyhelpline, says: ‘Many firms offered bargain deals to attract customers and these are now proving to be unsustainable as they are being squeezed by high wholesale prices, the price cap and other unexpected costs.’

An Ofgem spokesman says: ‘We have seen a number of supplier failures over the last year and our safety net procedures are working to protect customers.’