Beleaguered small energy provider GnERGY has now ceased trading, following struggles to pay its debt to Ofgem.
The company failed to comply with a final order requiring it to pay £673,876.62 plus interest to the Renewables Obligation buy-out fund. The company had been initially issued a final order from the regulator in October.
In January, GnERGY, which was a company managed by ex-Gurkhas, was issued with a notice of failure to comply after it was unable to give Ofgem any assurance it would meet its obligation.
The company’s 9,000 domestic customers, along with a handful of non-domestic customers, will now be switched to a new supplier by Ofgem.
Philippa Pickford, Ofgem’s director for future retail markets, said: “Gnergy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and domestic customers’ credit balances are protected.
“Ofgem will now choose a new supplier for you and 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.”
The company is the first small supplier to cease to trade in 2020, after two years that saw growing struggles for many.
At the same time GnERGY was issued with a final order, three other companies were, including Delta Gas and Power, Robin Hood Energy and Toto Energy. Subsequently, Toto Energy ceased trading, becoming the 16th since the beginning of 2018.
Robin Hood Energy has been openly critical of Ofgem’s handling of Renewable Obligation payments. In December, the regulator payed out £109,529,764 to suppliers who presented Renewables Obligation Certificates for the year.
GnERGY has been approached for comment.