One Select ceased trading; the eighth domestic supplier to go under this year alone. It is clear that there is an institutional issue that is severely hampering the progression and success of small suppliers within the sector resulting in millions of households being left in limbo. This year Spark Energy, Extra Energy, Future Energy, National Gas and Power, Iresa Energy, Gen4U and Usio Energy have all gone bust. The added turmoil in what is a national arena plagued by monopoly, opaque practices and uncompetitive lethargy, it is vital to question the end result for consumers.
Jane Lucy is of the opinion:
‘The fact that eight energy providers have ceased trading in 2018 clearly indicates that Ofgem does not have the correct due diligence in place to ensure that energy providers are properly regulated – investigating on a granular level items such as cashflow and trading accounts – to ensure longevity in service for consumers. Energy suppliers should have to validate the financial health of their business, given that there are wider issues surrounding the obtaining of licences in general. It is only through proper regulation that the industry can prevent further closures.
It is also important to stress that the closure of the aforementioned energy suppliers does not mean that you need to submit to poor customer service and extortionate prices from the big six energy suppliers. Whilst it is somewhat unsettling to see the UK’s smaller energy providers cease trading, at Labrador we are working towards how we can check the financial health and stability of suppliers before confirming a switch to guarantee that it is safe.’