Green Network Energy & Simplicity Energy Go Bust
Ofgem appoints EDF Energy to take on customers of Green Network Energy, while Simplicity Energy customers will be transferred over to British Gas Evolve as of Sunday, 31 January 2021.
Green Network Energy and Simplicity Energy have ceased trading, it has been announced. The two challenger energy firms became the first suppliers to close their doors this year, having both entered credit default with the gas and electricity network operator last week.
Read on to find out the next steps to take if you’ve been affected by the closures and what to do if your supplier goes bust.
How many customers will be affected by the closures?
A total of just under half a million customers will be affected by both suppliers going under. Green Network Energy supplied gas and electricity to around 360,000 households and a smaller number of business customers, while around 50,000 domestic customers relied on Simplicity Energy for their supply.
Will my supply be cut off?
Customers of both failed suppliers will still continue to receive their energy supply as usual and domestic customers will see their credit balances protected, thanks to Ofgem’s safety net.
The energy regulator has appointed EDF Energy to take on Green Network Energy customers, while Simplicity Energy customers will be transferred over to British Gas Evolve. Ofgem has advised customers to hold off switching in the meantime. Instead, you should take a meter reading and wait for the new supplier to contact you in the coming days.
As soon as your new supplier has been in touch, you are free to shop around for a better deal and will not be charged any exit fees if you eventually choose to switch away.
Will I get the same tariff with my new supplier?
As EDF and British Gas Evolve have now been appointed to take on customers of the failed suppliers, your current tariff will automatically end and you’ll be moved on to what is known as a ‘deemed’ tariff. Deemed tariff rates are often far higher than a provider’s regular rates, so you could end up paying more than you were with Green Network Energy or Simplicity.
You are free to either try and negotiate a cheaper tariff from your new supplier or look elsewhere for a better deal.
I’ve already switched supplier - will this still go through?
If you’re already in the process of switching away from Green Network Energy or Simplicity, this move should still go through and any Direct Debit you had set up with the failed suppliers should be cancelled automatically. We still recommend confirming with your bank though, just to be sure.
What happens if I’ve just switched to Green Network Energy or Simplicity?
If you’ve started switching away from another supplier to either Green Network Energy or Simplicity, this switch will continue to go through as planned, though you will be moved over to EDF or British Gas Evolve, instead.
Will I still receive my Warm Home Discount?
Customers of Green Network Energy who were eligible for the Warm Home Discount scheme will still receive the £140 rebate under EDF Energy by March, the supplier has announced.
What have the suppliers said about the closure?
At the time of writing, neither Green Network Energy nor Simplicity had publicly commented on their respective closures.
Customers attempting to log on to the websites of the failed energy firms today were met with a holding page containing a statement from Ofgem, while the Twitter accounts of both suppliers have been deleted.
Philippa Pickford, Director of Retail at Ofgem, said:
“I am pleased to announce we have appointed EDF for the customers of Green Network Energy, and British Gas Evolve for customers of Simplicity Energy. Their energy supply will continue as normal, and domestic customer credit balances will be honoured.
“Both new suppliers will be in contact with customers over the coming days with further information. Once the transfer has been completed, customers can shop around for a better deal if they wish to.”
Commenting on the decision, Managing Director for EDF’s Customers business, Philippe Commaret, said:
“We are pleased to be able to step in to support the customers of Green Network Energy, who will have been concerned to hear that their existing supplier has unfortunately ceased trading.
“We are working closely with the supplier to ensure a smooth transition and ensure that customers are switched over as quickly as possible, with everything taken care of for them. With EDF, they will be getting a reliable supplier who provides excellent service and zero carbon electricity supply, which we offer to all our residential customers as standard.
“Customers do not need to do anything at the moment – supply will continue as normal and we’ll be in touch in the coming weeks to explain any new arrangements.”
Peter Simon, Managing Director for British Gas Evolve, said:
“We welcome Simplicity Energy customers and will do everything we can to ensure their switch is smooth. We’ll be offering them a bespoke market competitive tariff and they will be supplied with 100% green electricity.
“With British Gas Evolve, our aim is to offer residential customers a low cost and reliable service from a trusted provider. We have taken what we know works from disrupter brands and combined it with our vast experience in the energy market to create a new customer offer that we think is well suited to the Simplicity Energy customers.”