Why has E.ON Taken Over Hub Energy’s Customer Base?
E.ON announced the take over of Hub Energy’s customers—catalysed by Ofgem, the British energy regulator. Hub recently announced that it would no longer be trading, a closure that has now affected more than 15,000 customers. As a result of the closure, Ofgem selected E.ON Next—the newly branded energy service—to provide for Hub’s recently relieved customers.
What is E.ON Next?
E.ON Next is a subsidiary of the E.ON group. The E.ON Next arm of the company acts as a dedicated provider of 100% renewable energy services, which are free from tariff exit fees.
Switching Energy Providers
Customers are free to make the switch to a new energy provider as they please, however, they have been encouraged to wait until the transfer from Hub Energy to E.ON is complete. Neil Lawrence, Director of Retail at Ofgem, has commented on the switch over.
‘I am pleased to announce we have appointed E.ON Next as the new supplier for customers after Hub Energy entered insolvency. We understand that this news may be unsettling for customers, however, they do not need to worry’, says Lawrence. ‘Their energy supply will continue as normal and all domestic and non-domestic customer credit balances held on their accounts will be protected by E.ON Next’.
Why is Hub Energy Giving Up Energy Customers?
As announced recently, Hub Energy has ceased trading, which left its customer base—6,000 domestic customers and 9,000 businesses—open for the taking. The strains imposed on businesses due to Covid-19 will have likely played a part in the company’s closure, along with the tight deadline for companies to provide Renewable Obligation Certificates (ROCs)—by the 1st of September 2021. Despite the closure, Ofgem reassured Hub’s customers they would not be left powerless.
‘I understand that a supplier going out of business is unsettling for customers, however, Hub Energy customers do not need to worry. Under our safety net, we’ll make sure your energy supplies continue and if you are a domestic customer and have a credit on your bill with Hub this is protected and you will not lose the money that is owed to you by Hub’, said Lawrence.
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