Energy firm with 80,000 customers goes bust as bills jump £111

A SMALL energy firm with tens of thousands of customers has gone bust.

Rebel Energy announced today it is ceasing to trade, becoming the latest energy firm to go under.

Getty

It means about 80,000 customers in the UK are now left without a supplier.

However these customers won’t see any disruption to their energy supplies as they are protected by regulator Ofgem.

Any funds that have been paid into accounts with Rebel Energy and existing credit balances will also be protected.

Customers of Rebel Energy will be contacted by their new supplier in the coming days.

Tim Jarvis, director general for markets at Ofgem, said: “Rebel Energy customers do not need to worry, and I want to reassure them that they will not see any disruption to their energy supply, and any credit they may have on their accounts remains protected under Ofgem’s rules.  

“We are working quickly to appoint new suppliers for all impacted customers. We’d advise customers not to try to switch supplier in the meantime, and a new supplier will be in touch in the coming weeks with further information.”

It is worth noting that you will be able to switch once you’ve been moved to a new supplier.

The news comes as energy bills have just rocketed up for millions.

The new energy price cap came into force today, meaning the average dual fuel bill for those not on a fixed deal has risen from £1,738 a year to £1,849.

This is an increase for the average household of £111 a year, or £9.25 a month.

The energy price cap is set by Ofgem every three months.

It is a cap on the amount suppliers can charge per unit of gas and electricity and is based largely on wholesale energy prices.

You should bear in mind there is no cap on how much each customer will end up paying, as it depends on your usage.

Today’s price cap rise marks the third consecutive increase.

It’s also £159 per year higher than the price cap set for the same time last year, but £531 lower than at the height of the energy crisis in early 2023.

This latest rise is thanks to an increase in gas prices across Europe.

Citizens Advice said Rebel Energy’s collapse would add to an “already stressful situation” following the bill rises.

Alex Belsham-Harris, head of energy policy, said: “The Government and Ofgem must ensure customers of Rebel Energy who’ve fallen behind on bills continue to access affordable repayment plans.”

What should I do if my energy supplier has gone bust?

Ofgem has strengthened its rules following the energy crisis so suppliers are more resilient to shocks and less likely to fail.

But even so, there is still the risk of some suppliers collapsing.

If you’ve been affected, you should wait until the regulator has allocated you a new supplier before taking any action on switching.

You should be contacted by the supplier.

Once you’ve been moved over, you can switch if you would like to.

You won’t be charged any exit fees if so.

In the meantime, you should take a meter reading ready for when your new supplier contacts you.

Which other energy firms have collapsed?

Most recently, green energy firm Ripple Energy went under.

The company had asked customers for cash in exchange for shares in wind turbines to local co-operatives.

The Sun revealed back in March it had filed notice to appoint administrators.

Smaller energy firms are more likely to collapse although they can often offer customers better deals than the Big Six companies.

Fewer energy companies have collapsed since Ofgem introduced its new rules.

That followed 30 companies going bust in less than a year at the height of the energy crisis.

They included Bulb, Zog Energy, Together Energy and Orbit.

The collapses left more than two million households without a supplier.

Under Ofgem’s new rules, energy firms must have a minimum financial buffer so they can better withstand market disruption.