Neon Reef and social energy supply collapse, affecting 35,000 households

0


Two other energy suppliers have closed their doors, bringing the toll of the gas crisis to 21 companies in the past 10 weeks.

Ofgem confirmed on Tuesday that Neon Reef and Social Energy Supply have ceased operations. Electricity and gas supply will continue as normal for the 35,000 households they previously served while the regulator appoints a supplier to take charge of their accounts. Credit balances will also be protected.

Neon Reef has supplied green electricity to around 30,000 homes. It was recently censored by Ofgem for missing payments in the Feed-in Tariff (FiT) program, which provides money to small-scale renewable energy producers, such as homes with solar panels, and in the Renewables Obligation fund, which supports renewable energy on a large scale. generators.

In total, Neon Reef owed the two funds £ 386,500 and had been the subject of two interim orders from Ofgem.

Although Neon Reef does not supply natural gas, it has been affected by the surge in wholesale electricity prices due to soaring gas prices (gas-fired power plants regularly produce around 40% of the electricity. UK) and low wind speeds. Electricity prices jumped to over £ 2,000 per megawatt hour on Monday evening amid low wind generation – only the second time they have crossed the £ 2,000 mark since 2018.

Social Energy Supply has served approximately 5,500 domestic customers and claimed to be “Britain’s only energy supplier specifically designed to help you save money with solar and battery storage”. It enabled households with solar storage systems and batteries to exchange electricity.

The technological side of the business will continue, with Social Energy continuing to sell smart systems and provide credits to owners of battery systems who trade on the trading platform. However, these users will no longer need to be supplied by Social Energy.

“Our technical team worked hard to make this possible. The Social Energy Hub will be able to manage when your energy is stored, imported or exported on the grid, ”the company said in a statement posted on its website.

Social Energy Supply was one of five companies named by Ofgem last week for failing to make payments under the feed-in tariff scheme. He owed £ 28,735.

Ofgem is urging households affected by the two recent meltdowns to raise the meters and wait until they are contacted by their new designated supplier.

Neil Lawrence, Director of Retail at Ofgem, said: “Ofgem’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.

“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait to appoint a new supplier and not change in the meantime. You can rely on your energy supply normally. We will keep you posted when we have chosen a new supplier, who will then contact your tariff.


Share.

About Author

Comments are closed.