Avro Energy and Green Supplier collapse as UK crisis grows
Avro Energy supplies gas and electricity to around 580,000 domestic customers and Green Supplier Limited supplies gas and electricity to around 255,000 domestic customers and a small number of non-domestic customers, according to Ofgem.
Although they represent a small share of UK domestic customers (Avro Energy 2% and Green Supplier 0.9%), their demise will send further shockwaves through the industry.
Under Ofgem’s safety net, the energy supply of both companies will continue and outstanding credit balances of domestic customers will be protected. Domestic customers will also be protected by the energy price cap when being switched to a new supplier.
Customers will be contacted by their new supplier, which will be chosen by Ofgem.
"Customers need not worry, their supplies are secure and domestic credit balances are protected," it adds.
"Ofgem’s advice is not to switch, but to wait until they appoint a new supplier for you. This will help make sure that the process of handing customers over to a new supplier, and honouring domestic customers’ credit balances, is as hassle free as possible for customers."
Ofgem has appointed EDF to take on the 220,000 domestic customers of Utility Point, and British Gas to take on the 350,000 domestic customers and 1,000 non-domestic customers of People's Energy.
British Gas is also taking on 82,000 customers of PfP Energy and 9,000 customers of MoneyPlus Energy.