Economy Energy has collapsed

[Taf]

https://www.bbc.co.uk/news/business-46798461

From Companies House:

DIRECTOR Lubna KHILJI

BUDGET UTILITIES LIMITED,
BUDGET UTILITY LIMITED,
BUDGET ELECTRICITY LIMITED,
BUDGET POWER LIMITED,
ECONOMY GAS, ELECTRICITY AND WATER LIMITED,
ECONOMY ELECTRICITY AND GAS LIMITED,
ECONOMY GAS AND ELECTRICITY LIMITED,
ECONOMY ELECTRICITY, GAS AND WATER LIMITED,
ENERGY ECONOMY LIMITED,
ECONOMY WATER LIMITED,
ECONOMY ELECTRICITY LIMITED,
ECONOMY UTILITIES LIMITED,
ECONOMY UTILITY LIMITED,
ECONOMY ENERGY TRADING LIMITED.

A few more to fail soon?

No surprise they collapsed since they got banned from taking on new customers.

Same fate as IRESA.

[RichardCoulter]

All else being equal, i'd still try out some of these new small companies. In the event of them collapsing, the supply isn't cut off and any credit is fully protected.

Last June, Ofgem stated that they were looking for new entrants to the market to be verified as having a sustainable business plan; Martin Lewis has also urged them to apply a 'fit and proper person test'.

[jfman]

They’d be better just regulating the Big 6. It’s a farce encouraging unsustainable new entrants into the market. I’m assuming it’s the taxpayers who “protect” everyone’s credit? Defeats the purpose really.

[RichardCoulter]

No, the scheme isn't paid for out of general taxation.

Originally Posted by RichardCoulter

All else being equal, i'd still try out some of these new small companies. In the event of them collapsing, the supply isn't cut off and any credit is fully protected.

Last June, Ofgem stated that they were looking for new entrants to the market to be verified as having a sustainable business plan; Martin Lewis has also urged them to apply a 'fit and proper person test'.

Their collapse is just about the only time you are protected though. In the interim, they’re stumbling along, over-charging people, promising refunds which fail to appear and generally causing stress. And Ofgem does little of note until things are about to blow up in their face anyway. Funny how this company was in the news one week because Ofgem is getting tough on them, and the next week the company’s bankrupt anyway. Almost as if the regulator is acting tough because they’re guaranteed there won’t be any push-back or follow up.

[jfman]

Originally Posted by RichardCoulter

No, the scheme isn't paid for out of general taxation.

Magic money tree? Profits of other energy companies with actual business models? Someone is paying, and it won’t be the shareholders/owners of economy energy.

https://www.theguardian.com/business...0-in-the-lurch

Nine energy suppliers have failed totalling £80m picked up by other companies (in other words their customers). Effectively penalised for going with reputable suppliers while those chasing a quick buck have their credit balances preserved.

[RichardCoulter]

Originally Posted by Chris

Their collapse is just about the only time you are protected though. In the interim, they’re stumbling along, over-charging people, promising refunds which fail to appear and generally causing stress. And Ofgem does little of note until things are about to blow up in their face anyway. Funny how this company was in the news one week because Ofgem is getting tough on them, and the next week the company’s bankrupt anyway. Almost as if the regulator is acting tough because they’re guaranteed there won’t be any push-back or follow up.

That's a good point about all the extra hassle and stress that's caused.

The company that I use has said that if I put my account in credit I can earn a decent rate of interest. I've checked and it would be covered by the scheme, but I can't help wondering if this is because they desperately need the funds. If everything seems ok in a month, I might pay a year in advance or something. .

---------- Post added at 05:47 ---------- Previous post was at 05:45 ----------

Originally Posted by jfman

Magic money tree? Profits of other energy companies with actual business models? Someone is paying, and it won’t be the shareholders/owners of economy energy.

https://www.theguardian.com/business...0-in-the-lurch

Nine energy suppliers have failed totalling £80m picked up by other companies (in other words their customers). Effectively penalised for going with reputable suppliers while those chasing a quick buck have their credit balances preserved.

I think this is why Ofgem are looking to reform the scheme and why Martin Lewis is calling for extra checks.