Spark Energy Is The Latest To Go – Who Is Nexthttp://www.alpineutilities.co.uk/wp-content/themes/osmosis/images/empty/thumbnail.jpg 150 150 David David http://0.gravatar.com/avatar/c0af84839713104cb87bc94d9fcce0c5?s=96&d=mm&r=g
Spark Energy Supply Ltd is the latest small supplier to cease trading, after Extra Energy the 2nd in just a week.
This sparks the debate: are small suppliers viable? Is it worth signing up with a small supplier?
For domestic customers there isn’t that much on stake. OFGEM will now find an alternative supplier of last resort who offers to take on the failed supplier’s customers.
OFGEM’s message reads: ”
Our message to energy customers with Spark 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.
“Ofgem will now choose a new supplier and ensure 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.
“Although we have seen a number of supplier failures this year, our safety net procedures are working as they should to protect customers.”
It’s a different story with commercial customers: The new chosen supplier will take on the failing supplier’s customers, but unless they offer to honor the previous supplier’s contracts, their new tariff offered maybe anything but competitive.
Changing supplier will place customers on the excessive deemed rate until the switch is complete.
OFGEM are now running a consultation on their proposal to increase the tests before granting a license to a new supplier. It remains to be seen whether this will improve matters and we will stop seeing suppliers going out of business on a regular basis.
So, our advise to customers considering their renewal is: Unless the savings are substantial, go for an established supplier that has been around for many years with a good customer service track record.
Alpine Utilties Ltd will advise to the best of our knowledge with every quote if the cheapest supplier offered belongs to that category.