Another two power suppliers have ceased to trade, in what continues to be a challenging market for smaller players.
Green Network Energy – which provided gas and electricity to around 360,000 domestic customers as well as a small number of non-domestic customers – and Simplicity Energy – which provided gas and electricity to around 50,000 domestic customers – both closed this week.
Since 2018 more than 20 suppliers having 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.
Meanwhile other suppliers have also struggled, with ten suppliers – including the likes of aforementioned Tonik and GnERGY – failing to meet the late payment deadline for Renewable Obligations (RO) having either gone bust or had their license revoked.
Additionally, Ofgem issued final orders to three suppliers who failed to make their payments, and this week announced a £100,000 fine for Symbio Energy to send a “strong message” to others about the importance of obligation payments, regardless of challenges caused by COVID-19. The burden of RO payments has been cited by numerous collapsed suppliers as a particular challenge for operating as a small supplier.
Ofgem has advised Green Network Energy and Simplicity Energy customers not to switch to another supplier as it will appoint one for them, and they will be contacted in the following weeks.
Philippa Pickford, director of retail at Ofgem, said the 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”.
Both Green Network Energy and Simplicity Energy have been approached for comment.