- Utility Point and People’s Energy have both announced that they have become worthless.
- More than half a million customers have been told to wait until a new supplier is found
- The pair follows PfP Energy and MoneyPlus Energy, which both folded last week
Two energy suppliers, Utility Point and People’s Energy, announced today that they are ceasing business, affecting more than half a million customers.
Customers from the two firms will be contacted by their new supplier, who will be selected by Offgame.
Utility Point currently supplies gas and electricity to approximately 220,000 domestic customers, while People’s Energy supplies energy to approximately 350,000 domestic customers and approximately 1,000 non-domestic customers.
Utility Point and People’s Energy are closing in on business, affecting more than half a million customers
This is the second time this month that two energy suppliers have announced they have closed.
PfP Energy, a supplier that had about 80,000 domestic customers, and challenge provider, MoneyPlus Energy, which has about 9,000 domestic customers, announced they were closing last week.
British Gas has since announced that it will handle supplies for customers of both companies.
Customers with Utility Points and People’s Energy are now advised to sit tight as they continue to receive supplies under the safety net of offgame.
The outstanding credit balance of the domestic customers will also be protected.
The regulator advised customers not to switch to another provider until a new provider is appointed and they are contacted in the coming weeks.
It states that customers should keep meter readings ready when they come into contact with their new supplier.
This will make the process of transferring customers to the chosen supplier and paying any outstanding credit balances as smooth as possible.
Customers are advised not to switch energy supplier until offgame they can get a new one
Neil Lawrence, Director of Retail at Offgame, said: ‘While the news that a supplier is going out of business can be upsetting, Utility Point and People’s Energy customers need not worry.
‘As part of our safety net we will make sure your energy supply continues. If you are a domestic customer with credit on your Utility Point or People’s Energy account then it is safe and you will not lose the amount owed.
‘When we’ve selected a new supplier, we’ll update you, who will then contact you about your new tariff.’
Several smaller energy suppliers have pulled out of the market in recent times, including Xtra Energy, Spark Energy, Future Energy, National Gas & Power, Iressa Energy, Gen4U, Ugeo Energy and OneSelect.
Justina Miltiente, energy policy expert at Uswich, said: ‘The news of People’s Energy & Utility Point closing business means that seven energy suppliers have now been eliminated this year.
“The announcement reflects the difficult situation that the challenging brands are facing. Many operate on low profit margins and have been badly hit by the effect of hike in wholesale prices.
Offgame will now select designated suppliers for 570,000 customers from both People’s Energy and Utility Point. However, those affected should wait until they know the details of the new provider before attempting to switch.
Customers should be reassured that their energy supply will continue as normal and that any credit balances created with those suppliers will be protected.
‘Once you know your supplier and the tariffs that are offered to you, it is worth comparing prices to check whether switching to another provider will provide better value for money. You will not be charged an exit fee for switching to another supplier.