British Gas has been appointed by the regulator to take on the more than 350,000 customers of recently failed supplier People’s Energy.
Ofgem’s announcement marks the fourth time this year the Centrica-owned supplier has taken on customers through the supplier of last resort (SoLR) process.
Scottish retailer People’s Energy exited the market last week along with fellow disruptor brand Utility Point, with EDF taking on the customers of the latter. The failures saw more than half a million customers enter the SoLR process.
Outstanding credit balances, including money owed to both existing and former domestic customers of People’s Energy will also be honoured.
In a statement Centrica said it had been agreed that all costs incurred by British Gas that it is not able to recover will be recoverable through the established industry levy in a “timely manner”. The supplier added it will do everything it can to minimise those costs.
Centrica chief executive Chris O’Shea welcomed the new customers and said his company will ensure the switchover is as smooth as possible.
“The actions we have taken over the past couple of years mean Centrica is in a robust financial position, and, as a responsible energy supplier built on a sustainable model, we are well hedged for the coming winter. We have now taken on the customers of four failed energy suppliers through Ofgem’s supplier of last resort process in 2021,” he added.
Neil Lawrence, Ofgem’s director of retail, said: “I am pleased to announce we have appointed British Gas as the new supplier for customers after People’s Energy entered insolvency.
“We understand that this news may be unsettling for customers, however they do not need to worry. Their energy supply will continue as normal, and all domestic customer credit balances held on their accounts will be protected by British Gas.”
Soaring wholesale costs continue to mount pressure on the sector and experts believe the flurry of failures may be an opportunity for large legacy players like British Gas and EDF to regain customers lost to challengers in recent years.
So far this year a total of seven suppliers have exited the energy market. The previous record for retailer failures was set in 2019 with nine.