Spark Energy Supply goes bust leaving 290,000 customers without a supplier
It's the sixth household suppler to go under this year and the second this week after Extra Energy also went out of business.
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SPARK ENERGY has gone bust leaving 290,000 customers without a gas or electricity supplier.
It's the sixth - and largest - household supplier to go under this year and the second this week after Extra Energy also went out of business.
Luckily for households, energy regulator's Ofgem will ensure that Spark customers continue to be supplied with power until a new provider is found.
Until then, Spark Energy customers should not switch. Once a new supplier is appointed, they'll be able to move elsewhere penalty free.
If you're in credit, this will be protected by Ofgem and will be credited to you by the new supplier.
Those in debt to Spark may, however, still need to repay these to the new supplier - it depends on the deal agreed with Ofgem.
Other energy suppliers to go bust
EXTRA ENERGY isn't the only supplier to go bust this year. Four other household suppliers have also gone under:
- In January, Future Energy went under with Green Star Energy taking on its 10,000 former users.
- In July, Iresa Energy went bust with Octopus Energy taking over its 100,000 customers.
- In September, Octopus Energy took on 500 Gen4U customers after the supplier went under.
- In October, Usio Energy went out of business with First Utility taking on its 7,000 customers.
- And in November, Extra Energy went bust leaving its 108,000 customers without a supplier.
Spark Energy customers don't need to take any action other than to take a meter reading now, which you can give to your new supplier.
This will help to make the process of transferring to a new supplier as smooth as possible.
Mary Starks, Ofgem’s executive director for consumers and markets, said: “Our message to energy customers with Spark 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 and ensure you get the best deal possible. While we’re doing this our advice is to ‘sit tight’ and don’t switch. You can rely on your energy supply as normal.
"We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.
“Although we have seen a number of supplier failures this year, our safety net procedures are working as they should to protect customers.”
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In a statement on its website, Spark blames its administration on the "increasingly tough trading conditions in the energy industry".
The news comes as only this week Ofgem proposed introducing new financial and customer service tests for new suppliers in a bid to better protect consumers.
A quarter of all customers are now supplied by small and medium sized suppliers.
Gillian Guy, chief executive of charity Citizens Advice, said: “The failure of two suppliers in a week is yet more evidence that this is a market where firms must have robust finances and sound business models.
"Ofgem’s announcement of proposals to tighten the rules for new energy suppliers is positive news. But there are poorly performing suppliers in the market now that require the regulator’s attention.”
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