Utility Point and People's Energy exit the market

Utility Point supplies gas and electricity to around 220,000 domestic customers. People’s Energy supplies gas and electricity to around 350,000 domestic customers and around 1,000 non-domestic customers.

This makes four suppliers that have exited the market in one week, with PfP Energy and MoneyPlus Energy going bust last week. More than 22 suppliers have left the market since August 2020.

Under Ofgem’s safety net, the energy supply of Utility Point and People’s Energy customers will continue and outstanding credit balances of domestic customers will be protected.

Customers of Utility Point and People’s Energy will be contacted by their new supplier, which will be chosen by Ofgem.

Ofgem has advised customers of Utility Point and People’s Energy not to switch to another supplier until a new one has been appointed and to take a meter reading for when the new supplier reaches out.

Neil Lawrence, director of retail at Ofgem, said: “Although the news that a supplier going out of business can be unsettling, Utility Point and People’s Energy customers do not need to worry. Under our safety net we’ll make sure your energy supplies continue. If consumers are a domestic customer with credit on a Utility Point or People’s Energy account this is protected and consumers will not lose the money that is owed to them.

“Ofgem will choose a new supplier and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. Consumers can rely on their energy supply as normal. We will provide an update when we have chosen a new supplier, who will then get in touch about the new tariff.”

Gillian Cooper, head of energy policy for Citizens Advice, said: “The failure of Utility Point and People’s Energy leaves more than half a million customers facing uncertainty. With the energy price hike and cut to Universal Credit due in the next fortnight, this comes at a hugely unsettling time for many.

“With more customers affected at one time than ever before, Ofgem must provide support and protection - especially for those worried about their finances.”

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