Ofgem appoints E.ON Next to take on Hub Energy’s 15,000 customers
Following the failure of Hub Energy, the regulator Ofgem has appointed E.ON Next to take on its 15,000 customers.
Why did Hub Energy fail?
It was announced last week that Hub Energy had ceased trading due to its inability to pay its debts with Ofgem releasing a statement saying that it had made an application to the ‘Court’ on August 11th.
The Court then issued an order that made a declaration to allow the regulator to revoke the companies energy and gas supply licences.
“Given that the company is unable to pay its debts, the Authority is not satisfied that the Company will be able to continue to provide or otherwise procure the services necessary for supplying electricity to its customers or to pay charges under the industry arrangements. ” said Ofgem in the statement.
Concerns are growing among energy industry experts that other smaller energy suppliers may go the same way as Hub due to record high Wholesale energy costs and obligations repayments deadlines.
October is predicted to be a tricky month for smaller energy suppliers as it is then that they have to pay out for several green energy schemes and meet payment deadlines.
Some suppliers use the money they’ve collected from their customers to try to keep trading rather than using it to fund the payments.
Also read: Hub Energy ceases Trading
E.ON Next gains 15,000 customers
Under the SoLR process Hub Energy’s 15,000 customers have been given to E.ON Next.
The energy supplier was created by E.ON following its acquisition of Innogy and its npower customer base and is the new face of the E.ON brand. In May 2021 all two million npower customers were transferred to the new entity and claims to be a renewable energy provider.
Neil Lawrence, Ofgem’s Director of Retail, said: “I am pleased to announce we have appointed E.ON Next as the new supplier for customers after Hub Energy entered insolvency. We understand that this news may be unsettling for customers, however, they do not need to worry.
“Their energy supply will continue as normal and all domestic and non-domestic customer credit balances held on their accounts will be protected by E.ON Next.”
Also read: Acquisitions and mergers have been the biggest form of energy supplier growth
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
Government announces new plans to tighten rules around green energy tariffs and prevent greenwashing
Energy Supplier Switching falls to a three year low despite rising Energy Price Cap
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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.
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