ENERGY firm Brilliant Energy is the latest supplier to go bust, affecting more than 17,000 customers.
Regulator Ofgem announced today that the firm has ceased trading – but said customers won’t be cut off.
Brilliant Energy Brilliant Energy has gone bust, affecting 17,000 customers
Customers now must wait for Ofgem to choose a new supplier for their homes.
Ofgem said it expects to have picked a new supplier within the next “three to four days” but that the process can take up to two weeks.
The regulator has a safety net which means that Brilliant Energy’s customers won’t be cut off and their outstanding credit balances will be protected.
This also applies to customers who receive gas and electricity from Brilliant Energy under a “white label” arrangement with Northumbria Energy.
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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 “white label” is an organisation that doesn’t have an energy supply licence but works with a firm that does to offer customers tarrifs under the white label’s brand, which is Northumbria Energy in this case.
Ofgem advises customers to take a meter reading and wait for the new supplier to contact them.
Customers can then decide if they’re happy to stick with the new supplier or can shop around for a cheaper deal instead – but don’t switch yet.
Ofgem said you should wait until your account has been transferred to a new supplier to make the process “as smooth as possible”.
Philippa Pickford, Ofgem’s director for future retail markets, said: “Our message to energy customers with Brilliant Energy 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.
PA:Press Association Ofgem will choose a new supplier for Brilliant Energy’s 17,000 customers
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“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.”
Matthew Vickers, chief executive at the Energy Ombudsman, said: “The collapse of an energy supplier can be a stressful and unsettling experience for consumers.
“If you are a Brilliant Energy customer, we would echo Ofgem’s advice to sit tight and don’t switch.”
Brilliant Energy is the third firm to go bust this year so far, after nine ceased trading last year.
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Our Power ceased trading in January, while Economy Energy went bust at the very start of the year.
Last year saw nine small energy firms fail – with Extra Energy, Spark Energy,Future Energy, National Gas and Power, Iresa Energy, Gen4U, Usio Energy, One Select, and Electaphase Energy all going bust.
As more and more households switch to small and medium energy suppliers, we take a look at whether they’re safe to sign up to.
The Government’s energy price cap took force this year, here’s what it means for your bills.
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