Octopus Energy has been appointed to take on Avro’s 580,000-strong customer base, as it becomes by far the largest supplier to Britain’s “crisis-hit” retail energy market.
Ofgame (Office of Gas and Electricity Markets) said Octopus, which specializes in sustainable household gas and electric, was selected after a “competitive process” to get the best deal for Avro’s customers.
The move would allow Octopus to offset all costs, including buying energy for the failed supplier’s customers through an industry levy that ultimately falls on consumer bills.
Families transferred to octopus will also be protected by the energy price cap, the regulator announced.
There is currently a difference of over £500 between how much octopuses would be allowed to charge under the UK annual price range, which rises to £1,277 from October, and buying energy for new customers at current wholesale prices. There is a difference of around £1,800 in cost. , according to analysis by financial Times.
Offgame said supplies to Avro customers will continue as normal when they switch to Octopus — and that all affected people will be contacted in the coming days.
It advises those who want to “shop around” for a better quote that as long as the transfer to Octopus is complete before switching, customers who choose to switch will not be charged an exit fee. Will go
Gillian Cooper, head of energy policy for Citizen Advice, said having a new supplier should “remove some of the uncertainty” for Avro’s customers.
“Their credit balance will be carried forward and their new supplier, Octopus Energy, will let them know what their new tariff will be,” she told the Press Association.
“Anyone struggling to pay their bills should be supported and Octopus Energy should ensure that any loan repayment plans Avro Energy’s customers continue to have.”
Ms Cooper emphasized that some pensioners and low-income people who were eligible for the government’s warm home discount under their Avro tariffs should continue to receive it with their new supplier.
She said: “It is up to the government and offgame to work with suppliers to ensure this.”
This comes after the government rejected claims that it was looking at paying larger suppliers to pick up customers left behind by the collapse of smaller rivals amid the ongoing chaos in the sector.
The trade secretary, Kwasi Quarteng, told lawmakers in the House of Commons this week that he could “explicitly” cancel any subsidies or grants for large energy suppliers.
Currently, ministers are relying on an existing offgame process in which energy conglomerates bid to become a “supplier of last resort” when a rival goes out of business – like Octopus did for Avro.
This measure favors suppliers who are performing well because it allows them to increase their customer base – significantly, in some cases.
Credit: www.independent.co.uk /