Commenting on the news that Eversmart Energy has ceased trading, uSwitch.com energy expert Emma Bush said:
“Eversmart Energy is the sixth supplier to go out of business since the start of the year. Companies need a lot of money to be able to finance their operations in the energy market, so small suppliers have to grow quickly, offering good value deals and strong customer service while avoiding negative headlines.
“Unfortunately, Eversmart were often in the news for the wrong reasons: they launched a headline-grabbing tariff which required customers to pay for a whole year’s energy up-front. But this quickly turned controversial thanks to the claims they made about paying interest on their customers’ credit balances. Then they were late making their required payments to help boost renewable energy generation, and doubts about their longevity began to set in.
“For households affected by today’s news, there is no cause for alarm as they will be fully protected thanks to Ofgem’s safety net. The most important thing they can do now is sit tight and take a meter reading while they wait to see who the supplier of last resort will be.
“Once a new supplier has been allocated, households can shop around for a better deal and switch away if they wish, without paying exit fees.
“But with yet another supplier going out of business, Ofgem needs to press ahead with its reforms for regular health checks on existing energy companies to ensure they can finance their operations while upholding a high level of customer service. Regular stress-tests for suppliers and ongoing fit-and-proper person assessments would help that.”