After going bust over the weekend, 160,000 GB Energy Supply customers face being hit with higher bills this winter.
GB Energy Supply’s Managing Director, Luke Watson, said in a statement on its website that “swift and significant increases in energy prices over recent months” meant its position became “untenable.”
Energy regulator, Ofgem, has reassured concerned customers that their gas and electricity supplies won’t be affected though and customers don’t need to take any action.
Customers will automatically be put on a special ‘deemed’ contract (this means a contract you haven’t chosen) and can be more expensive. A deemed contract can last as long as you want it to.
Which? have advised customers should now look for the cheapest tariff available.
Which? managing director of home and legal services, Alex Neill, says, “We encourage affected customers to take a meter reading as soon as possible.”
In the event of an energy business going bust, Ofgem will choose the best value energy supplier as soon as possible and contact all GB Energy Supply customers.Your new energy supplier doesn’t have to automatically put new customers on the cheapest deal though.
“When your new energy supplier contacts you, ask for the cheapest deal available but remember you don’t have to go with this new supplier,” Alex adds.
Which? advises to use an independent switching site to compare gas and electricity deals to find a cheaper tariff.
“Do some research to ensure you are getting the best possible deal for you,” Alex says. “Which? Switch provides consumers with a transparent and impartial way to compare energy tariffs. You can also call us on 0800 410 1149.”
For those in credit or in debt to GB Energy Supply will be advised on the next step from the new supplier too.
“Ofgem said that it’s working to protect customers’ credit balances. If you are in debt to GB Energy Supply, you may have to pay this back to it. Your debt will not be moved to your new supplier,” explains Which?.
The GB Energy Supply website has now been taken down leading customers unable to contact the company directly after it ceased trading on Saturday 26 November.
Managing Director of GB Energy Supply, Luke Watson, said in a statement, “We understand that customers will want to contact our call centre to discuss this, however we request that you refrain from doing so at this time and instead wait until we contact you with further information.”
Luke added, “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,”
GB Energy customers can visit www.ofgem.gov.uk/ofgem-safety-net for more information.