Yet another small energy company goes bankrupt: One Select stops trading and leaves behind 36,000 households
- One Select has become the eighth small energy company that is going bankrupt this year
- It had around 36,000 customers in England and Wales
- One Select has a headquarters in Farnborough and was founded less than two years ago
One Select has become the eighth small energy company that goes bankrupt this year and hits around 36,000 households in England and Wales.
In November, both Extra Energy and Spark Energy stopped trading, following Future Energy, National Gas and Power, Iresa Energy, Gen4U and Usio Energy – all of which collapsed in 2018.
Regulator Ofgem advises customers with One Select not to switch and instead to wait until it appoints a new supplier.
The collapse of One Select follows Extra Energy and Spark Energy, which stopped trading last month
It reassured the company's customers that their energy supply will not be affected and that their assets will be protected.
The regulator said: & # 39; Ofgem will choose a new supplier to take over One Select's customers as quickly as possible.
& # 39; This supplier will contact these customers shortly after being appointed. & # 39;
One Select, with its headquarters in Farnborough, was founded less than two years ago.
It was crowned the worst energy supplier for customer service in a recent survey of 34 companies by Citizens Advice.
Customers reported problems when contacting One Select by telephone and only about two-thirds of their customers received an invoice based on a meter reading of the past year, according to the survey.
If you are a customer of One Select
Ofgem, the energy regulator, appoints a new supplier for you.
Your energy supply continues, uninterrupted and your credit is protected.
Ofgem says that you have to take meter readings today and wait until your new supplier contacts you.
After you have been contacted, you can ask to be placed on the cheapest deal of your new supplier or look for a better deal from another supplier.
No exit costs will be charged for switching your new supplier.
The energy market has been hit by stimulating regulations, including a price ceiling on standard variable rates amid anger over rising bills.
The regulator has recently tightened the rules for new energy suppliers that come onto the market.
New entrants will have to prove that they have sufficient financial resources and can meet the obligations of customer service.
Ofgem said that the tests should ensure that newcomers are robust and at the same time stimulate competition and innovation in the market.
Emma Bush, energy expert at the uSwitch comparison website, said that the downfall of many small energy suppliers amounts to a mix of higher raw material prices and delays in collecting customer payments.
She said: "A handful of suppliers entered the winter period with little room for maneuver.
• Unexpected high demand from the East Beast has helped to increase raw material costs while switch volumes have reached near-record levels.
Companies that have less capital available, have difficulty paying policy obligations or have problems with internal processes such as invoicing or collecting payments will therefore find conditions that are challenging in the current environment. & # 39;
One Select has become the ninth small energy company that goes bankrupt this year
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