Our Power goes bust leaving 38,000 customers without a gas or electricity provider
Energy supplies will not be affected while regulator Ofgem finds a new supplier to take on Our Power's customers
ANOTHER small energy firm has gone bust, leaving 38,000 customers without a gas and electricity provider.
Our Power, which launched in 2016 as an ethical, non-profit supplier, is the latest in a string of small providers to cease trading.
Regulator Ofgem said the energy supply to the group's thousands of customers will not be affected and prepayment meters can be topped up as normal.
Last year saw six small energy firms fail - Extra Energy, Spark Energy, Future Energy, National Gas and Power, Iresa Energy, Gen4U, Usio Energy, One Select and Economy Energy.
If you're in credit, don't worry because your balance will be protected and the watchdog is already in the process of choosing a new supplier to take on Our Power's customer base "as quickly as possible".
Customers in debt may still need to repay what they owe to the new supplier - it all depends on the deal agreed by Ofgem.
Is it safe to switch to a small energy provider?
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.
Research from Which? has 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 Our Power - 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.
A statement on the provider's website advised: "It is with great regret that Our Power Energy Supply Ltd has ceased to trade. Ofgem, the energy regulator, is appointing a new supplier for our customers.
"Customers should not worry, their supplies are secure and credit balances are protected through the transfer to a new supplier.
"Prepayment customers should continue to top up and payments will be allocated to their meters as usual."
It also recommends that you don't switch deals until a supplier has been appointed in order to make it as "hassle free for customers as possible".
Philippa Pickford, Ofgem's director for future retail markets, said: "Our message to energy customers with Our Power 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 for you, ensuring you get the best deal possible.
"Whilst 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."
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Last year, Ofgem announced a new price cap which will come into effect at the start of next year, saving households up to £120 a year on gas and electricity bills.
Meanwhile, half a million households face £241 hike in energy bills - but there are ways to avoid it.
By only making a few small changes to their daily routine, these savvy bloggers have also managed to cut their bills by hundreds of pounds.
How to switch suppliers and save
SWITCHING suppliers is the best way you can cut your energy bills. Here's what you need to do.
1. Shop around - If you're on an expensive Standard Variable Tariff (SVT) deal you are throwing away up to £300 a year. Use a comparison 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 to hand - which you can find on your bill - 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.
For more advice read our guide on how to switch.
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