Neon Reef and Social Energy become latest suppliers to collapse

·2-min read

Two more energy companies, which supply more than 35,000 customers, have collapsed as soaring prices continue to hammer the sector.

Energy regulator Ofgem said Neon Reef Limited and Social Energy Supply Ltd have confirmed they are ceasing to trade.

Neon Reef supplies around 30,000 domestic electricity customers while Social Energy has around 5,500 domestic customers.

It means more than 20 suppliers have failed since the start of September as rocketing gas prices weigh further on smaller firms.

Ofgem said that customers’ energy supply will continue and funds paid into their accounts will be protected.

It added that affected customers should wait until a new supplier has been appointed and contacted them before looking to switch suppliers.

The watchdog said it is working closely with Government and industry to make sure customers continue to be protected this winter.

Neil Lawrence, director of retail at Ofgem, said: “Ofgem’s number one priority is to protect customers.

“We know this is a worrying time for many people and news of a supplier going out of business can be unsettling.

“I want to reassure affected customers that they do not need to worry – under our safety net we’ll make sure your energy supplies continue.

“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime.

“You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your tariff.”

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