Brilliant Energy has ceased trading just days after it was revealed to be in credit default, Ofgem announced today (11 March).
The London-based supplier had around 17,000 domestic customers and also supplied customers under a white label agreement with Northumbria Energy.
Industry regulator Ofgem will now choose a new supplier for the customers.
Philippa Pickford, Ofgem’s director for future retail markets, said: “Our message to energy customers with Brilliant Energy 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 for you, ensuring 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.
“We have seen a number of supplier failures over the last year and our safety net procedures are working as they should to protect customers.”
Responding to the news Matthew Vickers, chief executive at the Energy Ombudsman, said: “The collapse of an energy supplier can be a stressful and unsettling experience for consumers.
“If you are a Brilliant Energy customer, we would echo Ofgem’s advice to sit tight and don’t switch.
“We are keen to work with whichever supplier is appointed to take on Brilliant Energy’s customers in order to find the best possible outcome for the small number of consumers who have a complaint about the failed company open with us.”
The collapse of Brilliant Energy marks the third time a supplier has ceased trading in 2019.
Brilliant joins Economy Energy, which was also in credit default prior to market exit, and Our Power.
Last year Brilliant Energy was named as one of 14 suppliers which failed to meet its renewables obligation (RO) payment by the late payment deadline of 31 October.
The supplier was shown by industry regulator Ofgem to owe more than £77,000 in RO payments.
According to Ofgem Brilliant’s RO payment was “made in full very shortly after the deadline”.
Gillian Guy, chief executive of Citizens Advice, said: “The failure of another supplier is a clear sign Ofgem needs to urgently move forward with its reforms to better monitor existing companies and take action earlier when problems arise.”
In 2018 eight domestic suppliers exited the market including Iresa, Spark, Extra, Usio, Future Energy, Gen4U, One Select and Snowdrop.
Sarah Threadgould, chief customer officer at Which?, said: “The collapse of energy firms is becoming far too commonplace and consumers must not be made to shoulder the costs for these failures.
“It is vital for the regulator to press ahead with measures to ensure that current and future suppliers are financially sustainable and able to deliver excellent customer service.”