Eversmart Energy has gone into administration, becoming the sixth small energy supplier to bust in 2019 alone.
The green energy supplier, based in Manchester, had around 29,000 domestic customers on its books at the time of its collapse. The energy industry regulator Ofgem said it is working on appointing a new supplier to take on Eversmart’s customers. Any affected customers have been advised to wait until the process is complete before they switch energy supplier.
“Eversmart Energy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and domestic customers’ credit balances are protected,” said Philippa Pickford, director for future retail markets at Ofgem.
“Ofgem will now choose a new supplier for you and 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.”
Last year, a report from the Energy Ombudsman named Eversmart Energy as the second worst energy supplier in the UK in terms of customer service.
“We have seen a significant increase in complaints about Eversmart Energy, receiving four times as many complaints so far this year as we did in the whole of last year,” said Matthew Vickers, chief executive of the Energy Ombudsman. “Billing and switching problems have been the main drivers of unresolved complaints about the company.
“If you have complained to us about Eversmart and are awaiting a case investigation, decision or remedy we will contact you with an update soon. It’s unlikely that we will be able to take any further action on your complaint. In addition, as of today we cannot investigate any new complaints about Eversmart. We appreciate that this will be disappointing and frustrating for affected customers.”
Eversmart Energy joins a long list of small energy suppliers to go out of business in the UK in recent months. It’s the sixth energy supplier to go bust in 2019, and the 13th in the last two years. The other twelve to cease trading were Solarplicity, Brilliant Energy, Extra Energy, Spark Energy, Future Energy, National Gas and Power, Iresa Energy, Gen4U, Usio Energy, One Select, Our Power and Economy Energy.
“Eversmart is the 13th domestic energy company to collapse in the last two years,” said Gillian Guy, chief executive of Citizens Advice. “Our research shows this unlucky baker’s dozen of failed companies has left behind at least £172 million in unpaid costs. These will be picked up by other consumers through higher bills.
“We’re also concerned that some customers may have high credit balances. When a supplier goes bust, customer credit balances are protected. But all of us will eventually pay for honouring them through increased bills.
“These regulations provide vital protection for those affected. However, it was never expected that firms would actively encourage very large credit balances. Ofgem needs to act to reduce the cost of supplier failures and protect customers.”