36,000 households were left without an energy supplier as One Select, a small energy firm based out of Farnborough, has ceased trading.
One Select’s customers have since been taken on by Together Energy, and are free to switch to a new provider without paying exit fees.
The company recently released a statement announcing their demise and apologising to its customers: “One Select has ceased to trade. We apologise for any inconvenience this may cause. Customers need not worry, their supplies are secure and credit balances are protected.”
This year has seen a whole slew of energy companies go under, as One Select meets a similar fate as Extra Energy and Spark Energy who both went bust as recently as November.
The other companies to go under in 2018 were Future Energy, National Gas and Power, Iresa Energy, Gen4U and Usio Energy.
Ofgem immediately tried to put customers’ minds at rest, announcing that “Ofgem will choose a new supplier to take on One Select’s customers as quickly as possible. This supplier will contact these customers shortly after being appointed”.
Together Energy were appointed to take over One Select’s customers on Friday.
Ofgem’s Interim Director of Future Retail Markets, Philippa Pickford further reassured customers: “Our message to energy customers with One Select 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.”
She further explained that they were in safe hands as “We have seen a number of supplier failures this year and our safety net procedures are working as they should to protect customers”.
During its two years of operation, One Select was not the picture of an ideal energy supplier; in fact it was ranked the worst out of 34 energy suppliers for customer service by Citizens Advice.
It was reported that in the past year only two thirds of customers received a bill based on meter readings, with customers lamenting the inability to get through to One Select over the phone.
Ofgem has recently tightened up its criteria for new entrants to the energy market. Prospective suppliers must be able to demonstrate that they can meet customer service standards, and must have adequate financial backing.