Households supplied by Avro Energy with approx. 580,000 customers and Green with approx. 255,000 customers (not to be confused with the separate provider Green Energy) will be transferred to a new provider that has not yet been announced. In the meantime, your supplies will continue as normal and the Energy Regulatory Agency Ofgem says all balances are protected.
Ofgem will now begin selecting new suppliers to accommodate both companies’ customers. Once these new suppliers have been appointed, you will be contacted regarding the transfer of your account to one and will be informed of what happens next. Once your account has been transferred you can switch, and although prices are currently at record highs due to soaring wholesale costs (the price utilities pay for gas and electricity), it’s worth checking to see if you have the best possible deal – Use our free Cheap Energy Club to see if you can save.
The news follows the failures of PFP Energy and MoneyPlus Energy, which stopped trading two weeks ago, and Utility Point and People’s Energy, which went bust last week. A total of almost 1.5 million households were affected by delivery failures this month, with more to follow in an unprecedented time for the energy market.
Check out our latest weekly email for emergency help from MoneySavingExpert.com founder Martin Lewis. Martin will also guide you step by step through the energy aid in his new ITV The Martin Lewis Money Show Series that will restart at 8:30 p.m. tomorrow (Thursday, September 23).
DO NOT switch now – sit stuck and wait for the new supplier to contact you
If you are an Avro Energy or Green customer:
- Do not switch to another provider until a new one has been appointed. Ofgem says you should wait to be contacted by the new supplier in the coming weeks, otherwise you could face issues with your switch as Avro Energy and Green customers will be transferred to bulk transfers.
- Take a meter reading. It is useful to have it ready when your new supplier contacts you. You should do this whether you are a credit meter or a prepay customer.
- When a new supplier is appointed, you will likely switch to a new deal – which may cost more. Ofgem says it is likely that your current contract will end and you will be transferred to a special “recognized” contract (a plan that you did not choose). These tend to be expensive, so it is possible that your bills will go up.
- If you’ve moved, see if you can save by moving. You can ask the new provider to switch you to a cheaper tariff, but you can also switch to another provider without any exit fees. So it’s best to do an overall market comparison – which you can do on Cheap Energy Club – so that you can find the best deal for you.
The energy loan is protected even if you have recently left the company – so you do not lose any money that is owed to you
You may be owed money by Avro Energy or Green if your account has accumulated funds. In this scenario, the supplier commissioned by Ofgem will pay you back all the monies to which you are entitled – even if you had already started the change before the company went down. The supplier commissioned by Ofgem should contact us here to agree on a refund – even for those who have not switched to it – but this can take a while.
If you owe money, you probably have to pay it anyway. Payments go to either Avro Energy or Green, the administrator, or the new supplier. The new supplier will tell you how this works after the takeover.
If you are in the process of switching, your switch will still take place
If you have already started moving down from either Avro Energy or Green, you will continue to switch to the new provider you have chosen. You shouldn’t have to do anything. Your direct debit with your current supplier should be automatically canceled, but check anyway and if not, cancel it manually after the switch is complete. All outstanding credits will be paid out to you by the supplier appointed by Ofgem – see above for more.
If you are about to switch to Avro Energy or Green, the switch should proceed as planned, although you will then be automatically switched to the new supplier that Ofgem will appoint.
There’s no need to cancel your direct debit, but it’s okay if you’ve already done so
You don’t have to cancel your direct debit immediately. Ofgem says your new supplier will be in touch shortly to explain how they will charge your account, including any direct debit schemes.
Ofgem says you can cancel your direct debit before the new provider contacts you if you want. If you’ve already canceled it, there is no need to reactivate it and your new supplier will explain what to do as soon as they get in touch with you.
What does Ofgem say?
Neil Lawrence, Director of Retail at Ofgem, said, “Ofgem’s number one priority is protecting customers. We know this is a worrying time for many people and the news that a supplier is going out of business can be worrying.
“I want to assure Avro Energy and Green Supplier Limited customers that they don’t have to worry. As usual, you can rely on your energy supply. We will let you know when we have selected a new supplier who will then contact you about your tariff. “