Ofgem intervenes to protect 35,500 customers after Neon Reef and Social Energy go bankrupt.

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Ofgem intervenes to protect 35,500 customers after Neon Reef and Social Energy go bankrupt.

Customers of both companies may be shifted to a’supplier of last resort,’ which could result in an increase in their energy bills.

Due to the energy price crisis, two more energy suppliers have gone bankrupt, putting 35,500 homes in jeopardy.

Green energy provider Neon Reef, which served 30,000 homes, and smart energy provider Social Energy Supply, which served 5,500, both announced their closures on Tuesday.

Customers of both companies could be transferred to an Ofcom-appointed “supplier of last resort,” which could result in significant increases in their energy bills unless they switch to a cheaper tariff.

Due to the rise in wholesale gas prices, the two energy companies are the latest to fail.

Many small energy companies are struggling to stay afloat as a result of an energy price cap that protects consumers from drastic bill increases. They are unable to pass on rising costs to their customers.

Customers are advised to “take a meter reading ready for when your new supplier contacts you” while waiting to hear from a new supplier.

Social Energy Supply has announced that it will no longer trade.

“Ofgem, the energy regulator, is appointing a new supplier for all of our supply customers,” the statement said on the company’s website.

“Customers should not be concerned; their supplies are safe, and funds paid into their accounts will be safeguarded if they are in credit.”

“Ofgem’s number one priority is to protect customers,” Neil Lawrence, director of retail at Ofgem, said.

We understand that this is a stressful time for many people, and hearing that a supplier is closing down can be upsetting.

“I want to reassure affected customers that they don’t need to be concerned: under our safety net, we’ll ensure that their energy supplies are maintained.”

If you have credit on your account, the money you’ve paid in is safe, and you won’t lose it.

“Ofgem will select a new supplier for you, and our recommendation is that you wait until we do so before switching.”

You can continue to rely on your energy supply as usual.

When we’ve found a new supplier, we’ll notify you, and they’ll contact you about your tariff.

“Any customer who is having trouble paying their energy bill should contact their supplier to see what options are available.”

Ofgem intervenes to protect 35,500 customers after Neon Reef and Social Energy go bankrupt.

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Neon Reef and Social Energy become latest suppliers to go bust as Ofgem steps in to protect 35,500 customers

Neon Reef and Social Energy become latest suppliers to go bust as Ofgem steps in to protect 35,500 customers

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