U.K. retail supplier Our Power, which has about 38,000 domestic customers, has ceased to trade.

Ofgem will choose a new supplier to take on Our Power’s customers as quickly as possible. This supplier will contact these customers shortly after being appointed.

Under Ofgem’s safety net, the energy supply of Our Power’s customers will continue and pre payment meters can be topped up as normal. The outstanding credit balances of domestic customers will be protected.

Our Power's cessation of trading follows the recent default of Economy Energy in the U.K. market. As previously reported, Ofgem appointed Ovo Energy to take on supplying Economy Energy’s 235,000 domestic customers.

Ofgem also recently issued a provisional order directing E (Gas and Electricity) Limited to stop E from completing the switch of former customers of Economy Energy to E.

Ofgem said that, "Ofgem understands that Economy Energy agreed the sale of around 30,000 customers to E in December 2018 and failed to notify Ofgem of this sale when it stopped trading."

"Ofgem believes that the contract between E and Economy Energy may no longer be effective as a result of Economy Energy ceasing to trade and the appointment of Ovo Energy to take over its customers," Ofgem said

"Ofgem has issued the provisional order to prevent further harm and uncertainty being experienced by former customers of the failed supplier Economy Energy, whilst it investigates this transaction. In the meantime, customers are in the process of being fully set up with Ovo Energy," Ofgem said

"The provisional order will remain in place for up to three months, unless it is confirmed. During this period, E must stop the transfer of all former customers of Economy Energy to E and write to Ofgem to state what steps it has taken to satisfy the requirements of the provisional order," Ofgem said

Tags:
U.K.   M&A  

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