The collapase of two energy firms has prompted a warning from money guru Martin Lewis.
Over 400,000 customers of Green Network Energy (GNE) and Simplicity Energy have been left without a supplier as the Met Office forecasts a cold start to February.
Ogfem confirmed the firms had ceased trading and said the 360,000 domestic customers of GNE and the 50,000 Simplicity customers would be protected.
Speaking on the ITV Money Show on Thursday, Martin Lewis said customers should not act in haste reports The Mirror.
“You don’t need to do anything yet,” the money expert told viewers.
“Your supplier will remain the same for now, and, in a few weeks, Ofgem, the energy regulator, will automatically move you to a new company with a replacement tariff.”
However, he suggested that bill-payers take a meter reading and email it to themselves with a timestamp.
“Do not panic. Your credit is protected and you won’t be locked in a new deal.
“Once you’ve switched across, you’ll be able to shop around for a better tariff. But right now, you need to wait until Ofgem has found a replacement supplier.”
High-profile firms including Tonik, Breeze, Economy Energy, Solarplicity, and Spark Energy have also collapsed, leaving many households in limbo.
Philippa Pickford, Ofgem’s director of retail, said: “Green Network Energy and Simplicity Energy customers do not need to worry, as under our safety net we’ll make sure your energy supplies are secure and domestic customers’ credit balances are protected.
Green Network Energy and Simplicity Energy are the latest failures in a sector that has been squeezed in recent years.
“Ofgem will now choose a new supplier for you and whilst we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime.
“You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.”
Green Network Energy and Simplicity Energy recently fell into credit default with the market operator Elexon, meaning they didn’t have enough credit to cover the cost of trading gas and electricity to supply its customers.
Peter Earl, head of energy at Compare the Market, added: “The energy market is not immune to the tough environment many businesses are facing as the pandemic continues to take its toll on the economy.
“Green Network Energy and Simplicity Energy customers do have options though, and once they have made contact with their new supplier, they can look around the market to find a supplier, service and price that works for them.”
Households on a pricey standard variable tariff or those who think they could save money on their bills are encouraged to use price comparison sites to see if they could cut costs by switching supplier.
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