GB Energy go bust -- 160,000 customers unaffected

Hoof_Hearted

I am still struggling to believe that Co-Op Energy are honouring existing GB Energy tariffs. For electricity, I am paying 9.4p per kWh fixed until the summer. These low rates were obviously contributory factors to GB's demise in a period of rising prices. I understand Co-Op's reasons -- to expand their customer base -- but their conditions seem very generous.

When my fix comes to an end, I will do my best to stay with them as I am grateful for the way in which they have taken this on.

Neil_Jones

Bear in mind that Co-Op have said they will honour the price until your tariff expires. Most if not all of them from GB were 12 month fixes, so by Christmas 2017 they'll have all expired and then you'll be at the whim of whatever's on offer from the Co-Op or other providers.

Their latest email says (my emphasis):

As a GB Energy account holder, on an existing fixed rate tariff, we have agreed with Ofgem we will honour your current contract and price until it is due to expire.

Many energy suppliers have had to withdraw their cheaper fixed rate tariffs and replace with higher priced fixed rate tariffs, due to a recent increase in wholesale prices. This means your existing GB Energy tariff is very competitive in the current market place giving you peace of mind and you can continue to enjoy the price of your tariff.

We will contact you again before your current tariff expires with all the information you need to make an informed decision on what to do next.

So in other words: Enjoy it while it lasts.

System

Hoof_Hearted wrote: »

I am still struggling to believe that Co-Op Energy are honouring existing GB Energy tariffs. For electricity, I am paying 9.4p per kWh fixed until the summer. These low rates were obviously contributory factors to GB's demise in a period of rising prices. I understand Co-Op's reasons -- to expand their customer base -- but their conditions seem very generous.

When my fix comes to an end, I will do my best to stay with them as I am grateful for the way in which they have taken this on.

They are not doing this out of the kindness of their hearts. It is a result of a change to the Ofgem policy on Supplier of Last Resort. The Coop will have gained 160,000 customers and saved nearly £1M in referral fees. They no doubt have contributed part of this saving and some form of goodwill payment to secure the deal. The cost of GB's collapse has been assessed at £25M. The difference is being 'funded' by Ofgem through a levy placed on all energy customers in the form of higher bills.

Hoof_Hearted

Neil_Jones wrote: »

So in other words: Enjoy it while it lasts.

But this is true of all fixed-price deals, so what's your point?

Neil_Jones

Hoof_Hearted wrote: »

But this is true of all fixed-price deals, so what's your point?

If your deal was to expire tomorrow you would not get another tariff that is anywhere near as good.

Hoof_Hearted

Yes, but I have my tariff until August, so 10 months at a great rate. Obviously, I'll pay more when it expires.

My point is that I feel very lucky that the Co-Op is taking me on and honouring what is an unbeatable deal. I didn't expect it.

in_my_bumble_opinion

I switched to GB Energy in mid-October so I've got the mega-low rates locked in till OCT 17 thanks to the Co-op.

Do I win the prize for switching closest to the time they went belly up?

Hoof_Hearted

Are you as surprised as I am, Bumble?