It has been reported that Economy Energy has gone bust. Its 235,000 customers have been transferred to Ovo Energy.
Small energy companies are going to feel the pinch this winter as wholesale energy prices rise and it is predicted that Economy Energy will not be the only one to fall into an insolvency procedure.
These small firms are finding it difficult as they buy the energy up front and pay for it using customer monies as it comes in.
Many of these small energy companies have sprung up over the last few years and jumped on the bandwagon competing for customers by offering cheap tariffs and coming first on the list of comparison sites.
Whilst customers energy supply is protected in these circumstances, their tariff is not and it could mean that many households will pay more for their energy.
Advice to customers looking to switch energy suppliers is to look at the level of customer service firms have and not just the cheapest tariff.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.