As posted earlier in the week, GB Energy, which supplied households, collapsed last weekend after it’s business became untenable in the face of very volatile wholesale energy prices.
In a statement posted on Co-operative Energy’s site, its Chief Executive says:
“GB customers on both fixed deals and standard variable tariffs will now be offered the same price as they were paying before. […] The cost of protecting customers’ balances will be partly met by Co-operative Energy and the rest will be covered by the safety net put in place by Ofgem, which is funded by a levy spread across all energy suppliers.”
This is welcome news for GB Energy’s customers, who won’t lose their credit balances.
What happens to business customers when a supplier fails?
The Ofgem safety net is designed to protect customers when a supplier fails. It means your supply will not be cut off, and Ofgem will facilitate moving your account to a new supplier. But, the safety net does not protect business customers’ credit balances.
This means if you’re a business, and your supplier fails and your business energy account is in credit, your money will not be protected.
According to Ofgem:
“[The] safety net protects all customers’ energy supplies, and all customers will be transferred to a new supplier. Business customers’ credit balances are not protected under the safety net.”
What should business energy customers do?
Our advice: don’t run up a credit balance. How do you do that:
- read your meter monthly – or get a smart meter installed so you don’t have to;
- send these readings to your supplier; and
- adjust your DD to reflect your actual usage
It’s not worth being in credit with your business energy supplier!
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