The Scotland-based energy firm Spark Energy has recently become the largest energy supplier in the UK to go bust. It means their near 300,000 customers will be forced to change supplier, although that process has been automated by Ofgem.
Blame Placed on Wholesale Costs and Price Cap
The original statement made by the company read, “Spark Energy will be unable to continue supplying customers due to increasingly tough trading conditions in the energy industry.”
The eleven-year-old firm’s Chief Executive, Chris Gauld, expanded on the reasons why Spark Energy was folding, saying,
“There is little doubt that these are difficult times in the industry. You only have to open the newspapers to see coverage of how the price cap and wholesale costs are impacting suppliers, big and small, across the country.
“We’ve built up a strong, growing energy business over the past eleven years. However, the UK Government’s announcement in September that it was capping domestic energy bills at £1,137 a year based on a typical dual fuel customer has caused chaos in the industry.”
Ofgem Investigating Energy Suppliers
Ofgem have been conducting investigations into Spark Energy, and as well as another supplier called Economy Energy. The investigations are focused on alleged non-payment of sums due under the renewables obligation arrangements. The Renewables Obligation applies to licensed energy suppliers from the UK only. It requires them to source a proportion of their electricity supply from renewable energy sources.
The industry regulator said,
“Ofgem has today launched investigations into Economy Energy and Spark Energy over their non-payment and will seek to ensure the outstanding amounts are paid.”
The spokesperson also explained that they are investigating the circumstances of why the firms have not paid. They also revealed that they have enforcement powers that require the companies in question to make those payments. They also confirmed that administering a fine on the companies was also within Ofgem’s remit.
Ofgem Switches Spark Energy Customers to OVO Energy
Affected customers need not worry as Ofgem has also stepped in to ensure they continue to be supplied with electricity. The UK’s energy industry watchdog has switched suppliers for the approximate 297,000 customers from Spark Energy to OVO Energy.
A recent statement posted on Spark Energy’s website said,
“We’re delighted that the GB energy regulator Ofgem has selected OVO Energy to take over our customers’ energy supply. If you’re a Spark customer, it’s good news – you don’t need to do anything. Spark will continue to service all aspects of your account under the Spark brand. It’s business as usual.”
If you are interested in switching supplier or simply learning more about the different energy suppliers and tariffs available for you and your business, contact Business Save and their team of highly experienced energy experts.