Neon Energy and Social Energy Supply both went out of business, affecting 35,500 people. A total of 24 energy companies have gone bankrupt since August 2021
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Two other energy suppliers went bankrupt this afternoon, leaving 35,500 customers without a supplier.
Energy regulator Ofgem has confirmed that Neon Energy and Social Energy Supply have both ceased operations.
Neon Energy supplied electricity to 30,000 homes, while Social Energy Supply had 5,500 customers.
A total of 24 energy companies have gone bankrupt since August 2021 as the gas crisis continues to engulf the industry.
Energy companies are grappling with the costs of rising gas prices, which have climbed 250% since January.
The last energy company to collapse was CNG Energy on November 3, a move that affected 41,000 customers.
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The day before, Omni Energy, MA Energy, Zebra Power and Ampoweruk also went bankrupt with 233,000 homes left in limbo.
Here we have information about your rights in the event of bankruptcy of your energy supplier.
Neil Lawrence, Director of Retail at Ofgem, said: âOfgem’s number one priority is protecting customers.
We know these are troubling times for many people, and news of a supplier’s bankruptcy can be troubling.
“I want to reassure affected customers that they don’t have to worry: through our safety net, we will ensure that your energy supply continues.”
Has your supplier gone bankrupt and you are worried about paying your bills? Let us know: email@example.com
What to do next if you are concerned
Neon Energy and Social Energy Supply customers are urged by Ofgem to sit still and wait for your new supplier to contact you.
You should wait until you find out which company you transferred to before deciding to consider changing companies.
In the meantime, you should take a meter reading when your new supplier contacts you.
If you decide to change providers, you will not be charged an exit fee for the change of provider.
But Martin Lewis warned households that if you switch to a new supplier, you will be subject to the energy price cap, which is currently the cheapest rate available.
The good news is that your energy supply will continue as normal while Ofgem decides which energy company to move to.
Ofgem also says that all credit balances will be protected, so you shouldn’t be left behind.
If your old energy company owes you money, your new supplier should reimburse you for the money owed to you.
Likewise, if you owe money, it will need to be refunded to your original energy company, administrator or new supplier.
Ofgem, or your new energy company, should get more information to you in due course.