It comes after ministers ruled out stepping in to prop up companies who are struggling to shoulder the costs of rising gas prices – a move Green previously warned would drive it to collapse
UK energy company Green has stopped trading with immediate effect.
The company cited a lack of government support for suppliers, unprecedented market conditions, and ‘regulatory failings’ for its insolvency.
Green, which entered crisis talks earlier this week, has around 250,000 customers who will now be placed onto a new supplier by Ofgem.
It comes just hours after the regulator warned multiple firms will fold in the coming weeks due to an ‘unprecedented’ surge in wholesale prices.
Neil Lawrence, director of Retail at Ofgem, said: “I want to reassure customers of Green Supplier Limited that they do not need to worry.
“Under our safety net we’ll make sure your energy supplies continue. If you have credit on your Avro Energy or Green Supplier Limited account this is protected and you will not lose the money that is owed to you.”
Ministers this week ruled out stepping in to prop up companies who are struggling to shoulder the costs of rising gas prices which, in the UK, closed at an all-time high on Monday.
Employing close to 200 people, Green chief executive Peter McGirr had already publicly warned that the company would fail within three months unless it received state support.
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In the past week, businesses including Utility Point and PfP Energy have stopped trading, with dozens more at risk of following suit.
But the Prime Minister says the energy crisis is only a ‘short-term problem’ and denied that the country is experiencing a gas shortage.
Green was the organiser of a letter from 15 smaller suppliers earlier this week which criticised both Business Secretary Kwasi Kwarteng and Ofgem for failing to engage with them.
The group of smaller suppliers said they felt ignored by the government, even as wholesale gas prices had surged by 70% since the announcement of the revised Ofgem price cap.
On Monday, calls to lift the price cap were written off by the government – suspending it next year would have allowed firms to hike prices at an unlimited rate to claw back cash from households.
The letter said that Ofgem was “currently unfit to regulate an industry they have appeared to have a vested interest in or turning a blind eye to the market returning to a selective monopoly and a reduction in competition”.
I’m a Green customer – what should I do now?
If a supplier collapses, Ofgem will assign all new customers a replacement provider. This could take a week so you’ll have to be patient.
There will be no blackout period where you lose gas or electricity in the interim or during the switchover.
In the interim, customers are advised to take a meter reading and wait for correspondence from their new supplier.
Here are your rights if your energy supplier collapses.
Ofgem’s advice to Green Supplier Limited customers in the meantime is to:
- Wait until a new supplier has been appointed and you have been contacted by them in the following weeks before looking to switch to another energy supplier.
- Take a meter reading ready for when your new supplier contacts you.
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