UK-based energy firm One Select ceases trading

One Select has become the eighth small energy firm to go bust this year, hitting around 36,000 households in England and Wales.

In November, both Extra Energy and Spark Energy ceased trading, following on from Future Energy, National Gas and Power, Iresa Energy, Gen4U and Usio Energy - all of which have collapsed in 2018.

Regulator Ofgem is advising customers with One Select not to switch and instead wait until it appoints a new supplier. 

It reassured the firm's customers that their energy supply will not be affected and their credit balances will be protected.

The regulator said: 'Ofgem will choose a new supplier to take on One Select's customers as quickly as possible. 

'This supplier will contact these customers shortly after being appointed.'

One Select, which has headquarters in Farnborough, was set up less than two years ago. 

It was crowned the worst energy supplier for customer service in a recent survey of 34 firms by Citizens Advice.

Emma Bush, energy expert at comparison website uSwitch, said the demise of many small energy suppliers was down to a mix of higher commodity prices and delays in collecting payments from customers.

She said: “A handful of suppliers entered the winter period with little room for manoeuvre. 

“Unexpectedly high demand thanks to the Beast from the East has helped push up commodity costs, while switching volumes have reached near-record levels. 

“Companies which have less capital available, have been struggling to pay policy obligations, or are having problems with internal processes such as billing or collecting payments are therefore going to find conditions challenging in the current environment.”

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