Small energy firm Iresa goes bust plunging almost 100,000 customers into limbo
Energy watchdog Ofgem has confirmed that it will continue the supply to customers and will choose a new supplier to take on Iresa's clients
A SMALL energy supplier Iresa has gone bust, leaving 100,000 customers unsure of how to pay their bills.
But energy watchdog Ofgem is urging customers not to panic as their energy supply will not be affected.
The regulator will choose another firm to take on Iresa's clients and make sure supplies continue as they currently are.
The new supplier will then contact customers individually when the process is complete to offer them the opportunity to switch tariffs to another supplier.
The regulator has also warned users not to switch suppliers now and instead to hold on until the new supplier contacts you.
This is because it makes the process of handing over the customers to a new supplier easier.
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, from Ofgem, said that Iresa customers have "no need to worry" as they are protected by the watchdog.
He said: "Ofgem is working to choose a new supplier as quickly as possible for you.
"Your energy supply will not be affected and will continue as normal – the thing that will change is that your energy will come from a new supplier.”
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.
Citizen's Advice is also reassuring customers that their supply won't be affected now that the firm's gone bust and that it's working closely with Ofgem.
Gillian Guy from the consumer body said: "It's important that customers sit tight and wait for Ofgem to organise a new supplier - switching to another energy company now could mean people don’t get any refunds they may be entitled to.
"The new supplier will contact customers in due course, but people will need to take a reading of their gas and electricity meters.
"We're working closely with Ofgem to make sure people can get the help they need."
LATEST ON ENERGY BILLS
Iresa is not the first small energy business to go bust - Future Energy ceased trading in January this year.
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.
How to save on your energy bills
OFGEM and Citizen's Advice are advising customers not to switch until their new supplier has contacted them directly.
But when you're ready, switching suppliers is pretty straight forward - and you can save lots of cash. Here's how to do it:
1. Shop around - If you're on an SVT deal you are throwing away more than £300 a year. Use a comparion site like MoneySuperMarket.com or EnergyHelpline.com to see what best deals are available to you.
The cheapest deals are usually found online and are fixed deals - meaning you'll pay a fixed amount usually for 12 months.
2. Switch - When you've found one, all you have to do is contact the new supplier.
It helps to have the following information - which you can find on your bill - to hand, to give the new supplier.
- Your postcode
- Name of your existing supplier
- Name of your existing deal and how much you pay
- An up-to-date meter reading
It will then notify your current supplier and begin the switch.
It should take no longer than three weeks to complete the switch and your supply won't be interrupted in that time.
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