Future Energy goes bust leaving 10,000 customers in bill limbo
Regulator Ofgem moves to reassure customers their supply won't be cut off
ENERGY firm Future Energy has gone bust, with more than 10,000 customers affected.
Regulator Ofgem announced this morning that the company, which supplied homes mainly in the north east and Yorkshire, has ceased trading.
Customers now must wait for Ofgem to choose a new supplier for their homes, with a spokeswoman for the regulator telling The Sun Online that it expects to have picked a new supplier within the next "two to three days."
But under its safety net scheme, no customers will be left without energy and it is urging customers not to panic and try switching themselves.
Any outstanding credit balances will also be protected, with Ofgem advising customers to take a meter reading and wait for the new supplier to contact them.
Customers can then decide if they're happy to stick with the new supplier or can shop around for a cheaper deal instead.
Rob Salter-Church, Ofgem’s interim senior partner for consumers and competition, said: "If you are a customer of Future Energy there is no need to worry as we will make sure your energy supplies are secure and your credit balance is protected.
"Ofgem is working to choose a new supplier as quickly as possible for you.
"Whilst we’re doing this, our advice is to sit tight and don’t switch. You can continue to rely on your energy supply as normal – in fact the only thing that will change is that you’ll get a new supplier."
Citizens Advice also moved to reassure customers that their supply won't be affected by the firm going out of business.
IS IT SAFE TO SWITCH TO A SMALL ENERGY SUPPLIER?
FED-UP with sky high energy prices and poor customer service from the Big Six energy firms? Then you could save a packet by switching to a smaller firm.
Recent research from Which? found customers with smaller and medium sized firms like Utility Warehouse, Flow Energy and Octopus Energy are much happier than those with the major firms - and could save a whopping £333 a year by switching.
The biggest risk of choosing a small provider - like Future Energy - is that it goes bust.
But remember that if the firm does go under you won't be cut off, and Ofgem will try and get a new supplier in place as quickly as it can.
Once it has done this, the new firm will contact you - it doesn't have to honour the deal you were on with defunct firm - but under Ofgem rules any credit you have on your account is protected.
If you're unhappy with the new supplier's offer you are free to shop around for a new deal and switch - you won't have to pay any exit fees to leave.
Director of energy Victoria MacGregor said: "Future Energy customers’ gas and electricity will continue as normal - so they’ll still be able to heat and light their homes.
"The energy regulator Ofgem is finding a new supplier for Future Energy customers. The new supplier will contact customers in due course.
";It’s important these customers sit tight and wait for Ofgem to organise the new supplier.
"Switching to another energy company at this stage could mean they don’t get any refunds they may be entitled to. In the meantime, customers will need to take a reading of their gas and electricity meters for their new supplier."
Future Energy is not the first small energy firm to go out of business.
Back in 2016 small energy firm GB Energy went bust, leaving around 160,000 customers in limbo.
C0-operative Energy was picked to take on its customers - around three days after it had gone out of business.
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