UTILITY Point and People’s Energy have collapsed, leaving around 570,000 customers without an energy supplier.
Industry regulator Ofgem announced this afternoon that the companies are ceasing to trade.
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Utility Point has around 220,000 domestic customers and People’s Energy supplies gas and electricity to around 350,000 households and around 1,000 businesses.
Citizens Advice said more customers “had been affected at one time than ever before”.
Customers of Utility Point and People’s Energy will be contacted by their new supplier, which will be chosen by Ofgem.
The new firm won’t have to honour the deal you were on with Utility Point or People’s Energy, but any credit on your account will be protected.
In the meantime, you should not switch to another energy supplier until a new one has been appointed, which can take several weeks.
Your electricity and gas supply will not be cut off while Ofgem finds you a new supplier.
It is recommended that you take a meter reading ready for when your new supplier contacts you.
Citizens Advice also recommended keeping old energy bills and waiting until your new supplier is appointed before cancelling any direct debits.
“This should all make the transition easier,” Gillian Cooper, head of energy policy for Citizens Advice, said.
Neil Lawrence, director of retail at Ofgem, said: “Although the news that a supplier going out of business can be unsettling, Utility Point and People’s Energy customers do not need to worry.
“Under our safety net we’ll make sure your energy supplies continue. If you are a domestic customer with credit on your Utility Point or People’s Energy account this is protected and you will not lose the money that is owed to you.”
One employee said they had been warned that People’s Energy was having cashflow problems but the collapse came sooner than anticipated.
The mother of two said: “I knew this was coming because they had already warned us a couple of months ago that they were having cashflow problems, but I thought we had longer.
“Now I’m worried I won’t get paid this month.”
She told The Sun that staff were working remotely, but were called into a virtual meeting this afternoon to hear the news.
The 38-year-old said: “They knew this was coming and they didn’t tell anyone and they didn’t give people time to get a new job. I really need to get paid this month.
“What’s strange is they were still bringing in new staff and training them up until the last couple of weeks.”
“I think the business has been badly managed.”
The directors of People’s Energy said: “we are truly saddened that People’s Energy has had to cease trading.”
They said: “We want to thank everyone who has supported the company’s mission to provide fair energy for all and support those in fuel poverty, and we also want to say a heartfelt thank you to our excellent team for all their hard work.
“We are sorry about any disruption or inconvenience caused for our members.”
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