Economy Energy went bust on the 8th January 2019 affecting 235,000 customers. Get a full list of suppliers that have gone bust here.
Economy Energy was an independent UK energy supplier that went bust in January 2019. Ofgem, the energy regulator, appointed Ovo Energy as the supplier of last resort (SoLR), meaning around 235,000 former Economy Energy customers were automatically switched across to Ovo.
Economy Energy collapsed after Ofgem took action against it in response to a growing number of complaints about its poor levels of customer service.
The regulator Ofgem took action against the supplier following complaints of declining customer service standards, which included inefficient complaints procedures and poor billing and payment processes, which saw customers on fixed rate deals hit with a £300 price increase.
Economy Energy also found itself in hot water with the regulator for not declaring that it agreed to sell around 30,000 customers to E, a rival energy supplier, in December 2018.
Ofgem stopped Economy from taking on new customers and the supplier collapsed shortly afterwards.
When an energy supplier goes bust, Ofgem puts its contracts up for tender to other energy suppliers, before choosing the one it thinks will offer customers the best service. The chosen supplier is known as a supplier of last resort (SoLR).
This process is in place as part of the Ofgem Safety Net, which ensures households aren't left without gas and electricity, should their supplier go bust.
When Economy Energy collapsed, all its existing customer contracts were transferred to Ovo as soon as it was appointed as the SoLR.
If your energy supplier goes bust, the only thing you need to do is take a meter reading and wait for Ofgem to appoint your SoLR.
Once the SoLR has been appointed it will be in touch to tell you what happens next, but it's unlikely this new supplier will place you on a competitive deal, so you should think about switching as soon as possible.
To avoid any potential complications, you should hold off switching until your SoLR has been appointed, but once it has been you should compare energy prices and switch as soon as possible.
The good news is you won't be tied into a deal with your SoLR, which means you can switch at any time without getting hit by a penalty charge, even if the energy tariff you had with your previous supplier included an early exit fee.
If you were in credit with your energy supplier when it went bust, the SoLR appointed by Ofgem should pay back any money owed to you, which could be in the form of credit on your new account.
If you were in debt when your supplier went bust, you'll either have to pay this debt to the new supplier, or else have to pay it back to your old supplier through the administrator.
If you have a prepayment energy meter, you'll also be fully covered by the Ofgem safety net. If you've got credit on your key, card or token, you'll be able to use it on your new account. If you need more credit, contact your new supplier to find out what you need to do, and if you'll need any additional equipment.
Switching energy suppliers is simple with The Energy Shop - simply pop your postcode in the box on the right of the page to get started.
It helps if you have a copy of your latest bill to hand when switching, as we need to take some details on your current energy deal and usage.
Once we have this information, we'll then show you a list of the best energy deals currently available.
All you then need to do is choose the one you like best, and we'll take care of the rest of the switch - you'll be with your new supplier within 21 days, and there'll be no disruption to your supply.