A third UK energy supplier has now ceased to trade this year, with Hub Energy announcing that it is shuttering.
The electricity and gas supplier had around 6,000 domestic customers and 9,000 non-domestic customers, who have been advised by Ofgem to not switch to a new supplier but take a meter reading and wait for a new supplier to be appointed to them.
It follows two suppliers – Green Network Energy and Simplicity Energy– ceasing to trade in January, as the market remains challenging for smaller players.
Since 2018 more than 20 suppliers have shuttered including a number in 2020, with Yorkshire Energy ceasing to trade in December, Tonik Energy in November, Effortless Energy in September, and GnERGY in March.
Many failed to meet their Renewable Obligations (RO) payments ahead of going bust, with 10 missing the late payment deadline in 2020. Following this Ofgem issued final orders to three suppliers who failed to make their payments, and fined Symbio Energy £100,000 to send a “strong message” to others about the importance of obligation payments in January 2021, regardless of challenges caused by COVID-19.
“I understand that a supplier going out of business is unsettling for customers, however Hub Energy customers do not need to worry,” said Neil Lawrence, director of Retail at Ofgem. “Under our safety net we’ll make sure your energy supplies continue and if you are a domestic customer and have a credit on your bill with Hub this is protected and you will not lose the money that is owed to you by Hub.”
Ofgem will appoint a supplier of last resort to take over Hub Energy’s customers. Following the closures in January, British Gas Evolve took over Simplicity’s customers while EDF took on Green Network Energy’s.