Categories: General

Energy firm ceases trading after ban

Energy supplier Economy Energy, which was recently banned from taking on new customers, has collapsed.

The supply to its 235,000 domestic customers will continue, any credit they have will be protected, and a new supplier will take on their accounts.

Regulator Ofgem said a new supplier would be appointed as soon as possible. On Friday, it had ordered the company to improve customer service.

Economy Energy is the latest of a host of small suppliers to fold.

Troubles

Customers had spoken of problems with disputed account balances, the firm’s failure to issue refunds, and concerns over billing delays.

The company had posted a message on its website saying that after “recent speculation and circulating misinformation” it had “no intention of closing our doors”.

However, Ofgem stepped in on Friday, banning the company from taking on new customers for three months to ensure it improved its customer procedures.

Now, just a few days later, Economy Energy has ceased trading.



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