A COVENTRY energy firm has ceased trading days after a government regulator threatened to revoke its licence.
Watchdog Ofgem had raised concerns about refunds, payments and ‘unacceptable’ customer service at Economy Energy.
The watchdog assured the firm’s customers their energy supplies will continue and prepayment meters can be topped up as normal.
The company, based in Friars House, Manor House Drive, near Coventry train station, has more than 200 employees which cater to nearly 250,000 customers.
Ofgem director for future retail markets Philippa Pickford said: “Our message to energy customers with Economy Energy is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected.
“Ofgem will now choose a new supplier for you, ensure you get the best deal possible.
“Whilst we’re doing this our advice is to ‘sit tight’ and don’t switch.
“We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.
“We have seen a number of supplier failures over the last year and our safety net procedures are working as they should to protect customers.”
Last week’s order banned the firm from taking on new customers, prohibited it from requesting one-off payments and increasing direct debits.
It warned the company that if drastic changes were not made it could take steps to revoke its licence.
The firm posted on its website: “Economy Energy has ceased to trade.
“Ofgem’s advice is not to switch, but to sit tight and wait until the new supplier has been appointed.
“This will help make sure that the process of handing customers over to a new supplier, and honouring credit balances, is as hassle free for customers as possible.”
The company has endured a torrent of complaints on review sites and the Observer has heard concerns from a number of elderly customers.
Responses on review site Trust Pilot from the city firm’s customer services team show countless apologies and acknowledgments of customers being owed ‘refunds’.
Ofgem previously opened three enforcement investigations into Economy Energy, two of which will now close with one remaining open.
Customers who have questions should visit the FAQs on our website. Or if they need additional support, call Citizens Advice on 03454 040 506 or email them via their webform. Alternatively, get in touch through Ofgem’s facebook or twitter feed @ofgem.