Ofgem has announced that two more energy supplier companies have gone bust and the industry regulator will be appointing a new supplier for customers.
Ofgem announced that Entice Energy and Orbit Energy have ceased trading on Thursday and the total number of energy firms now bust stands at 22.
A statement carried on Orbit’s website said, “Orbit Energy Limited is ceasing to trade. Ofgem, the energy regulator, is appointing a new supplier for its customers.
“Customers need not worry, their supplies are secure and funds that domestic customers have paid into their accounts will be protected if they are in credit. More information can be found here.”
The statement added, “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.
“Orbit Energy Limited is ceasing to trade. Ofgem, the energy regulator, is appointing a new supplier for its customers.”
Shadow Business Secretary Ed Miliband said, “With so many companies going bust in just two months, something not happening anywhere else in the world, it points to a systemic failure of regulation.
“Firms took risky bets and were allowed to do so and the Government and Ofgem significantly deregulated the conditions of operation in 2016.
“Will the Business Secretary now take responsibility for the clear failure of regulation there has been and doesn’t it suggest there needs to be a proper external review of the regulation of the market.”
Speaking in the Commons, Labour MP Alex Sobel said, “We’re moving back to an oligopoly of energy companies who are increasing their profits whilst the supplier of last resort is socialising losses.
“What’s he going to do to fix the broken energy market?”
The Business Secretary Kwasi Kwarteng responded with, “I don’t agree with his characterisation. I don’t think we’re going back to an oligopoly, as he said.
“I’ve always maintained that competition is absolutely essential in this market.”
Lisa Barber, Which? home products and services editor, said of the announcement this week: “This move should provide reassurance to any of Bulb’s 1.7m customers who may have been concerned about the collapse of their provider.
“We recommend Bulb customers to do nothing and wait for more information about the special administration process.
“Its customers will continue to see their bills limited by the price cap, which is likely to be the best deal for them at the moment.
“If you have already arranged to switch to or from Bulb, this will continue as planned.”