Ofgem has appointed Green Star Energy to take on the customers of collapsed supplier Future Energy, which ceased trading last week.
The watchdog announced late this afternoon that it had chosen Green Star, with over 300,000 domestic customers across the UK, as supplier of last resort for Future Energy’s 10,000 clients, based mainly in the North East and Yorkshire.
Under the move customers will pay the same tariff prices for now, with balances protected and, if they still wish to switch, no exit fees imposed.
Neil Barnes, Ofgem’s associate partner for consumers and competition, said: “We are very pleased to have been able to secure a deal with Green Star Energy, where Future Energy customers will continue paying the same price for their energy as they were before. And their credit balances will be honoured.
“Our advice for customers of Future Energy is to wait until Green Star Energy contacts you. They will give you more information about the tariff you are on, and about your credit balance. Then you can shop around for a better deal if you wish to.”
Last week’s announcement on Future Energy’s website gave no explanation for its closure.
It was the second supplier to cease trading this winter, after Brighter World Energy closed in December. The social supplier said its business model had become unsustainable over the long term because of market conditions. Its customers were taken over by Robin Hood Energy, the council-owned supplier that provided the white-label tariffs it offered to customers.
Last winter, GB Energy Supply went bust, blaming rising wholesale energy prices for making its position “untenable”. Ofgem appointed Co-op Energy to take on its 160,000 customers.