Challenger supplier OVO Energy has been appointed by Ofgem to take over Economy Energy’s 235,000 customers following the supplier’s collapse earlier this week.
It’s the second time OVO has been chosen by Ofgem to take on customers from collapsing suppliers in recent months, having selected them to absorb Spark Energy’s 290,000 customers after it went bust in November last year.
The two sets of customers, combined with CORGI HomePlan customers also taken on, OVO’s retail customer base now stands at around 1.5 million.
Economy Energy collapsed earlier this week having been slapped with a ban on taking on new customers by industry regulator Ofgem, which cited poor customer service scores.
OVO is to honour all outstanding credit balances of Economy Energy, including those who have left the supplier, and will pay the Warm Home Discount (WHD) to eligible Core Group and Broader Group customers.
OVO is to also waive the right to any Last Resort Supply Payments that may have been due, agreeing to fund all credit balances, WHD payments and all other transition costs independently.
An OVO spokesperson described the development as a “good outcome” for Economy Energy customers who have “had an uncertain few weeks”.
Economy Energy was the ninth energy supplier to enter Ofgem’s Supplier of Last Resort process in the last 12 months, representing a significant churn in the UK’s already volatile supplier market.