Economy Energy ceases trading

Commenting on the news that Economy Energy has ceased trading, uSwitch.com energy expert Rik Smith said:

“Unfortunately, Economy Energy didn’t get the basics right when it came to customer service, billing and payments, so when market conditions got tougher it didn’t have the solid foundations on which to continue trading.

“The expansion of the retail energy market has provided households with fantastic choice thanks to strong competition which has kept prices lower. But, to minimise the risk of further disruption to consumers, Ofgem should look at how existing suppliers can improve before they’re placed in special measures. This should happen alongside its review of conditions for allowing new energy companies into the market.

“Economy Energy’s quarter of a million customers will have their credit balances protected and the regulator will find a new supplier for them, at which point they should shop around to find a deal they’re comfortable with.

“And although conditions are challenging in the retail energy market at the moment, often it’s the well-run challenger brands who provide the cheaper tariffs and the better customer service, not to mention other popular choices such as green energy tariffs and easy account management.

“If you like the price being offered but are unsure about the brand, uSwitch runs an annual survey which shows what consumers think of their supplier. Last year, newer, smaller energy companies swept the board for customer satisfaction.”