The Informer

Economy Energy has become the ninth small energy supplier to fail in the past 12 months.

Ofgem has appointed Ovo Energy to take on supplying Economy Energy’s 235,000 domestic customers.

Economy Energy had been banned from taking on new customers just days before its collapse due to complaints.

Ofgem had previously opened three enforcement investigations into Economy Energy, two of which will now close, with a third into whether Economy Energy, and two other firms have infringed the Competition Act remaining open.

Safety net procedures

Philippa Pickford, Ofgem’s director for future retail markets, said: “Our message to energy customers with Economy Energy 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.

“We have seen a number of supplier failures over the last year and our safety net procedures are working as they should to protect customers.”

> See Ofgem's statement