- British Gas Has Captured Thousands of People’s Energy Customers
- EDF is also assigned to look after the customers of the utility point
- Two suppliers collapse amid industry woes as wholesale prices rise
British Gas has taken over 350,000 of People’s Energy customers after the firm collapsed last week.
The mid-sized supplier announced it would be closing business at a time when fears are mounting that more providers will close in the coming weeks as wholesale costs continue to rise and energy shortages continue.
At the same time, Utility Point announced that it would no longer work with EDF appointed to take on the company’s 220,000 domestic customers.
Both moves were conducted by regulator Offgame as part of its supplier of the Last Resort process.
British Gas rivals People’s Energy’s 350,000 domestic and 1,000 non-domestic customers
Outstanding credit balances, including owed money, from both existing and former domestic customers of People’s Energy and Utility Point will be respected.
Both People’s Energy and Utility Point customers were moved to their new suppliers over the weekend and will be contacted about changes in the coming days.
If they want to change the supplier they can purchase but they are advised to wait till the transfer is complete – however, given the current turmoil in the industry, the process has become more difficult.
Customers will not be charged an exit fee if they decide to switch to another supplier.
Neil Lawrence, Offgame’s Director of Retail, said: ‘I am pleased to announce that we have appointed British Gas as the new supplier to customers following the bankruptcy of People’s Energy.
“We understand this news can be disturbing for customers, however they need not worry.
‘Their energy supply will continue as normal, and all domestic customer credit balances held in their accounts will be protected. Your energy supply will not be interrupted.
British Gas and EDF will get in touch with direct debit customers to explain how to set up their account.
Big Six suppliers, British Gas and EDF, are taking on customers from Folded Energy Providers
Customers are advised not to cancel their direct debits as companies will aim to transfer these.
Meanwhile, Offgame added that suppliers of the Last Resort process would allow British Gas to recover the additional costs of taking on People’s Energy customers, where appropriate.
The Big Six supplier has said it will do everything it can to reduce those costs.
People’s Energy & Utility Point revealed they were falling last week, just days after PFP Energy, a supplier with about 80,000 domestic customers, and MoneyPlus Energy, which has about 9,000 domestic customers, announced they had folded. did.
Providers are expected to be the first of many to close business as a result of rising wholesale gas prices, leaving smaller suppliers more vulnerable to rising costs they cannot absorb.
The crisis is triggered by a number of factors, but is ultimately due to a decrease in natural gas production as well as an increase in demand.
As a result, wholesale gas prices are up 250 percent since January. The cost has also gone up 70 per cent since August.
It is thought that only 10 suppliers will stop doing business by the end of the year – down from 55 at the beginning of the year.