Blog Post

Bluegreen Energy Services Limited exits the market

Richard Simmonds • Nov 02, 2021

Yet another energy supplier has exited the market. This time it’s Bluegreen Energy Services Limited whose 5,900 domestic customers and a small number of business customers who will be put into the SoLR process.

Another one bites the dust

Since August, fifteen energy suppliers have exited the energy supply market with another eleven suppliers including Bulb at risk due to the surge in wholesale gas prices.

In a statement, Bluegreen, said it was in an "unsustainable situation".

Ofgem’s price cap as well as the high gas prices has been blamed by several energy suppliers for the ongoing crisis.

Ampower, Whoop Energy, Delta Gas and Power, Entice Energy, MA Energy, Neon Reef and Together Energy have all been sent provisional orders from Ofgem over the late payment of their Renewables Obligations and fears are rising that they will join; HUB Energy, MoneyPlus Energy, PFP Energy, People’s Energy, Utility Point, Green Supplier Limited, Avro Energy, Enstroga, Symbio Energy, Igloo Energy, Colorado Energy, Pure Planet, Daligas Limited and GOTO Energy in going bust.

Ofgem’s Director of Retail must be glad he has a statement that he can simply copy and paste into every report of a supplier’s closure as yet again he says, “Ofgem’s number one priority is to protect customers. We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.

“I want to reassure affected customers that they do not need to worry: under our safety net we’ll make sure your energy supplies continue. If you have credit on your account, the funds you have paid in are protected and you will not lose the money that is owed to you.

“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your tariff.

“Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available."

Also read: Ten Energy Suppliers are at risk as the renewables obligation deadline passes and Elexon blocks new customers

What happens next?

In the event of an energy supplier exiting the market, Ofgem will take over the process and assign a gas or electricity supply licensee to take over responsibility for the business’ customers. This occurs once Ofgem revokes the supplier’s licence.

The customers of each failed supplier will now be put into the Supplier of Last Resort (SoLR) process.

When it comes to choosing a SoLR the authority will assess to see which bidding licensee has the capacity to support the additional customers without jeopardising the supply to its current customers. It must also be able to fulfil its other supplier obligations. If no suitable supplier wants to be a SoLR, Ofgem can use its powers to appoint a supplier without its consent.

Also read: What Is A Supplier Of Last Resort? (SoLR)