Sadly, another of the smaller energy companies has ceased trading. A brief overview of what went wrong. And what to do if you were a Green Energy Network customer.
I was a Green Energy Network customer, what should I do?
First of all, if you were a customer of Green Energy Network when they ceased trading, you don’t need to do anything. Green Energy Network customers will be moved to EDF.
Your energy supply will not be interrupted.
Your balance (including credit) will be transferred to your new EDF account.
EDF will be in touch to advise your new tariffs. You should wait until DF have contacted you and set up your account before doing anything. You can then select one of the tariffs offered by EDF or change to a supplier of your choice.
This is a standard process when an energy company ceases to trade. Ofgem step in and arrange for a new supplier to take on the accounts.
What happened at Green Network Energy?
Green Network Energy has Italian roots and promoted green energy. Like a lot of smaller energy companies, they operated on very thin profit margins.
They have around 360,000 customers and were starting to grow their commercial business as well.
Along with another energy company, Simplicity Energy (around 50,000 domestic customers), Green Network Energy fell into credit default with Elexon. Elexon are the market operator, ensuring the whole system is largely balanced between the electricity generated and that being sold.
Suppliers are required to cover unpaid debts. Suppliers are expected to forecast energy use by their customers, and not over purchase energy. Otherwise, they will end up in debt.
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