Utility Point and People’s Energy have ceased trading today, both companies have confirmed. But customers are being advised not to do anything just yet until they’ve been assigned a new energy supplier
Energy suppliers Utility Point and People’s Energy have ceased trading, in a move that affects half a million customers in the UK.
Households have yet to be told which new supplier they will be moved to, but are being advised not to switch until they have more information.
Energy watchdog Ofgem will now decide which firm to switch thousands of customers over to.
Utility Point has around 220,000 customers while People’s Energy has 350,000 people signed up to its services.
This takes the total number of people affected by today’s announcements to 570,000.
A message on the Utility Point website reads: “It is with regret that we must announce that Utility Point is ceasing to trade.
Are you with Utility Point or People’s Energy and are worried about the switchover to a new firm? Let us know: [email protected]
“Customers need not worry, their supplies are secure and domestic credit balances are protected.“
People’s Energy said: “We are saddened to inform you that People’s Energy is ceasing to trade.
“Please rest assured that your energy supply is secure and all account credit balances are protected for our domestic customers. This includes any recent top-ups that were made as part of the seasonal weighting initiative.”
It comes after both PFP Energy and MoneyPlus Energy ceased to trade last week with nearly 90,000 energy customers left in limbo.
Green Network Energy and Simplicity Energy also collapsed in January this year, affecting 400,000 households.
What to do next if you’re affected
If you’re a Utility Point or People’s Energy customer, the current advice from Ofgem is to sit tight and wait until your new supplier contacts you.
You should wait until you know which firm you’ve been moved to before you decide to look into switching elsewhere.
In the meantime, it has been suggested that you should take a meter reading for when your new supplier contacts you.
It is important to check prices as soon as you know which deal you’ve been moved to, as you may not necessarily be transferred over to the cheapest supplier.
You won’t be charged exit fees for switching away from your new supplier.
The good news is, your energy supply will continue as normal while Ofgem is deciding which energy firm to move you to.
Ofgem also says any credit balances will be protected, so you shouldn’t be left out of pocket.
If you’re owed money by Utility Point or People’s Energy, your new supplier should pay you back any money you’re due.
Similarly, if you owe money, this will need to be paid back to People’s Energy or Utility Point, the administrator or to the new supplier.
Ofgem, or you new energy firm, should provide you with more information in due course.
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Neil Lawrence, director of retail at Ofgem, said: “Although the news that a supplier going out of business can be unsettling, Utility Point and People’s Energy customers do not need to worry. Under our safety net we’ll make sure your energy supplies continue.
“If you are a domestic customer with credit on your Utility Point or People’s Energy account this is protected and you will not lose the money that is owed to you.
“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. 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.”