One hundred and seventy firms were awarded licences by Ofgem and many are struggling. Many try to compete by offering ultra-cheap tariffs and this has created an unstable position where these suppliers will find it difficult to remain in business and many others forecast to make losses for at least the next two years.
Nine energy suppliers are likely to go bust in the next 12 months, leaving households with a total bill totalling tens of millions of pounds.
Energy analysts say that at least three smaller suppliers are in trouble and looking for a buyer, while a further six on the brink.
Fears are also growing for the health of some suppliers that have taken on the customers of firms that have already failed raising questions over regulator Ofgem’s handling of the market.
Fourteen energy firms have collapsed since January 2018. Eversmart was the latest to fold, in September. When Eversmart failed it had the second-worst service levels, as measured by Citizens Advice. Solarplicity, which was in the bottom 10 out of 39 firms for service, went bust in August. The other firms at the bottom of the Citizens Advice list are:
- Avro
- Green Star
- Ecotricity
- iSupply
- Outfox the Market
- Toto
- Utilita
Find the cheapest domestic energy deal on the comparison tool – check them with the list Citizen Advice list before signing up, it may be worth paying a little more in the long run.