Bulb and Octopus Energy reassure customers over energy firm failures

ENERGY firms are rushing to reassure customers who fear their supplier could be the next to collapse as the industry reaches crisis point. 

Bulb and Octopus are among the firms telling customers not to panic as a string of energy providers have collapsed.

Soaring gas prices have caused a number of suppliers to cease trading in recent weeks, and there are fears more could follow. 

This week it was revealed that Bulb was seeking a cash injection to help shore up its finances. 

The firm has been keen to reassure its customers that there is no need to panic. A Bulb spokesperson said: “From time to time we explore various opportunities to fund out business plans and further our mission to lower bills and lower CO2.

“Like everyone in the industry, we’re monitoring wholesale prices and their impact on our business.”

In a blog post this week, the firm said: "We want to be clear that Bulb members don't need to worry about their supply of energy.

"We buy our energy in advance and this means we're protected from the current wholesale costs that some smaller companies have struggled to manage."

Some industry commentators have said it is only “less prudently run” or “less well-backed suppliers” who have collapsed as gas prices have risen.

While some major firms have called for the Government to scrap green levies to ease pressure on the industry, others say the current situation is evidence that Britain needs to ramp up its sustainable energy capabilities and reduce its reliance on gas. 

An Octopus Energy spokesperson said: “Customers should not worry. The government’s energy price cap is doing its job and protecting them against price spikes. 

“The industry, including Octopus Energy, has worked closely with Ofgem and the government in the past when supplier failures have happened and there is a well-oiled process in place.

"As one of the largest, best backed, best run companies in the sector, we will do all we can to support consumers, government and Ofgem as they work through this."

The founder of Octopus Energy, Greg Jackson, has also taken to social media to speak to customers in recent days. 

He tweeted: “As a global, very well backed company we’re find but plenty more are not. 

“There’s no glee in seeing other companies fail, which is why we’ve launched a special recruitment drive to help some of those losing their jobs in those companies.” 

He also tweeted last night from an industry awards ceremony where Octopus took home the title of “Supplier of the Year” and an award for digital innovation.

What if my energy supplier goes bust?

If your supplier folds, your energy won't be cut off, so there's no need to panic.

Ofgem will arrange an interim supplier so you won't have to go without.

Customers affected will be contacted by the new supplier, which will be chosen by Ofgem. 

The new firm won't have to honour the deal you were on with your previous provider, but any credit on your account will be protected.

It is recommended that you take a meter reading ready for when your new supplier contacts you.

Other charities also recommend keeping old energy bills and waiting until your new supplier is appointed before cancelling any direct debits.

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