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Two more energy suppliers go bust

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As the energy crisis continues, the casualty list keeps on growing, with Neon Reef and Social Energy Supply LTD both announcing that they had ceased trading on Tuesday.

Social Energy LTD will continue to trade through the technology arm of its business, whereas Neon Reef is to end operations entirely after falling into the hands of administrators.

Both companies were just days away from having their licences revoked for not paying into ‘feed in tariffs’ which all UK energy companies must do to support renewable schemes. Failure to do so results in fines and ultimately the removal of trading licenses. Neon Reef had recently failed to pay £349,149 whereas Social Energy neglected to cough up £28,735.

The latest developments bring the number of energy suppliers who have gone out of business to a staggering 21 since the start of September. Neon Reef and Social Energy Supply LTD serviced 30,000 and 5,500 homes respectively.

These households will be allocated a new provider within a few days via Ofgem’s ‘supplier of last resort’ mechanism. Under this process, customers of defunct energy companies are handed over to more established names in the industry. The system has worked well so far. However, high energy prices combined with the sheer number of companies going out of business has put significant strain on the market.

What to do if you are a customer of Neon Energy or Social Energy Supply?

Ofgem’s recommendation is to stay put for the time being. The switch to a new company takes a few days and to ensure that balances are effectively transferred it’s important to sit tight until a new supplier is allocated. The only thing you need to do is take a meter reading, note any debit or credit on your account and wait for Ofgem to find a new provider

Michael Quinn
Michael Quinn

Michael is a dedicated author helping usave to write guides, blogs and news for the last four years. When not writing articles, you can usually find him at wine tasting events or having a political debate on the night tube.

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