GB Energy Supply ceased trading, blaming rising energy costs! A short statement on the GB Energy Supply website, Managing Director, Luke Watson said: “Due to swift and significant increases in energy prices over recent months and as a small supplier, our inability to forward buy energy to allow us to access the best possible wholesale prices means that the position of the business has become untenable and as such we will now be entering a process overseen by Ofgem to move you to a new supplier.”
The supplier had grown rapidly offering knock down prices, often being the cheapest on the market. They had a turnover of over £22m in 2015 alone.
Ofgem are currently looking for a stable supplier willing to obtain GBs customers and honour their credit balances, which equates to over £24m. Several industry sources this a big risk for them to take as there were no guarantees the customer wouldn’t switch elsewhere. If no supplier can be found to honour the balances, under Ofgem rules confirmed the costs would be spread across all UK customers. This would equate to a charge close to £1 for every household.
Rachel Fletcher Ofgem’s Senior Partner for Consumers and Competition said: “In any competitive market companies will fail, therefore we have procedures in place to ensure customers’ energy supplies are always secure.”
“If you are a customer of GB Energy Supply there is no need to worry as we will ensure your energy supplies are safe. Ofgem is actively working with the industry to ensure your transition to a new supplier is as smooth as possible. While this process is underway our advice is not to do anything as you can continue to rely on your energy supply as normal.”
Martin Lewis, Energy Saving Expert has advised for current GB customers to take the following actions:
- Take a meter reading now, this will help the transfer process
- Sit tight and wait until the new supplier appointed by Ofgem contact you.
- Once the supplier contacts you, discuss the best tariff.