finance

Goto energy collapses becoming FOURTH supplier in a week to cease trading


ENERGY supplier Goto Energy has collapsed, making it the fourth energy supplier to go bust in a week.

It leaves roughly 22,000 customers in the dark after the company announced today that it has ceased to trade.

Another energy has collapsed leaving customers in the dark

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Another energy has collapsed leaving customers in the darkCredit: Getty – Contributor

However, these customers will not have their energy supply cut off while Ofgem hunts for a new company to take on the tens of thousands of affected Brits.

It has warned those affected to wait until a new supplier has been appointed before switching to another company if they choose to do so.

The energy regulator also said that customers should take a meter reading now ready for when your new supplier contacts you.

This will mean the process of transferring customers over to a new company will run more smoothly and any outstanding credit owed will be paid more quickly.

Ofgem director of retail Neil Lawrence said: “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.

“Any customer concerned about paying their energy bill should contact their supplier to access the range of support that is available.”

Uswitch energy policy expert Justina Miltienyte said that Goto Energy’s topple shows how small energy suppliers are “continuing to feel the pressure” of the current energy crisis.

She said: “Once a move has been completed, the best advice for most consumers is to still hold tight.

“If you’re on a standard variable tariff it’s unlikely there will be a better value deal to switch to due to the protection of the price cap and the current wholesale price situation.”

Goto Energy is now the fourth supplier to have gone bust in just one week as the energy crisis continues to pile pressure on companies and household finances.

Daligas announced it had folded on Friday, leaving around 9,000 customers without a provider.

While Pure Planet and Colorado Energy collapsed on Wednesday, leaving a combined 250,000 in the dark.

Before that, at least 13 companies had already gone to the wall this year.

Wholesale gas prices have risen more than 250% since the beginning of the year, creating a strain on the UK energy industry that has toppled many suppliers.

It comes as millions of customers are battling against eye-watering hikes to their energy bills.

Millions of customers whose energy firms go bust this winter face paying £400 more to new suppliers taking over their contracts.

That’s on top of a record £139 increase to their energy bills which rolled out earlier this month.

Households have seen their bills rise from £1,138 to £1,277 when Ofgem raises the price cap on October 1 – which limits how much households on default tariffs pay for their gas and electricity.

What should I do if my energy supplier goes bust?

Many people are looking to switch supplier at the moment because they are worried theirs will go bust, but now may not be a good time to do that.

If your provider goes bust Ofgem will move you to a new supplier, and your credit balance will be protected.

Households are advised by Ofgem to take a photo of the meter reading.

You’ll be contacted by the new supplier which can take a couple of weeks, Citizens Advice says, and they should let you know how you’ll be paid back.

The organisation also has a handy list of the new suppliers which have taken over the ones which have gone bust.

Customers should log into their accounts online to check their balance and download any bills. It’s worth keeping hold of old bills so you can show your payment history and any credit.

Households with direct debits are also advised not to cancel until the new account is set up.

In the meantime, you can help to drive down costs by following our guide on how to save energy in EVERY room of your house.

Energy price cap rise could leave more than five million households in the cold

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