Neon Reef and Social Energy Supply exit the market

The toll on the energy retail market continues to mount as the two suppliers became the eighteenth and nineteenth suppliers forced to exit the market since September. In the whole of 2021, a record 24 suppliers have shuttered and more market exits are forecast.

As with most of the other businesses that have been forced out of the market it was the continually high gas prices that took the biggest toll.

Those companies still trading will be looking to put more pressure on Ofgem to take immediate action to prevent further closures with many blaming the regulator’s price cap for limiting how much a supplier can charge their customers.

Calls are growing for the regulator to increase the regularity of when the price cap is changed to enable it to become much more flexible in a tumultuous market.

Currently, the price cap is well below the level needed for suppliers to be viable and those companies still clinging on is either the Big Six, those who’ve hedged their gas prices or have substantial investment and/or financial resources. 

Also read: A third of remaining energy suppliers are at risk as wholesale energy prices hit second-highest level in three years

A further 35,500 customers lose their supplier

The SoLR process has been utilised once more for Neon Reef’s 30,000 customers and Social Energy Supply’s 5,500 customers. So far this year over 2 million consumers have been forced to change their energy companies due to closures.

“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,” said Ofgem’s Director of Retail Neil Lawrence.

Also read: Energy Suppliers blame Ofgem for the crisis in the energy market

Looking to enter the UK energy market? Dyball Associates team of energy market consultants can guide you through the steps to get qualified and attain your gas or electricity licence. 

Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates can help. 

Further Reading

Five energy suppliers warned they could lose their licences for failing to pay renewable obligations

Large Energy Suppliers see the best month for energy switching in eight years as consumers seek stability

The Department for Work and Pensions slammed for ‘damaging’ tariff switching message

Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.

For more information on how to start and manage an energy company, get in touch with Dyball Associates today.