Iresa Energy, which only launched in 2016, has ceased trading, affecting under 100,000 customers.
Rik Smith, uSwitch.com energy expert, says: “Iresa is only the third domestic energy supplier to go out of business in a decade. However, in January this year Ofgem stepped in to prevent the company taking on new customers until it could prove it had resolved persistent customer service failings. Unfortunately, it looks like Iresa was unable to resolve a number of customer and financial issues that it faced, and has had to cease trading.
“While Iresa’s customers will be concerned to hear today’s news, safeguards put in place by Ofgem mean there will be no interruption to their energy supply and their credit balances will be protected. Ofgem is now in the process of appointing another energy company to take on Iresa’s customers.
“If you are with Iresa, take a meter reading and wait until your new supplier contacts you. The price you pay with the new supplier may differ from the one you had with Iresa, so once your new supplier contacts you, you should run a comparison to check if there is a better deal you wish to switch to. You will not have to pay any exit fees if you decide to switch.
“We urge Ofgem to now ensure Iresa customers get a fair deal with a new provider as quickly as possible. Ofgem is aiming to strengthen regulations to ensure that new energy companies entering the market are financially stable and operationally capable, in order to provide good customer service. There is a great range of choice on offer for consumers, but the regulator must ensure that companies who are not fit for purpose are not given a supply license.”
Customers looking for more advice can read uSwitch.com’s guide to what happens when an energy company ceases trading.