MSE News: Small energy supplier One Select stops trading - what you need to know
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So a comparison website company which knows that an energy company is about to go under should still list it? I don't agree with that. However in doing so the comparison site is shooting themselves in the foot because they are unlikely to get commission from a company which has gone under.
No-one makes a comparison web site out of the goodness of their heart so they should shoulder some of the responsibility!
I'm not sure how a comparison site should be vetting these companies or even know if they are about to go under. They are supposed to be impartial and to show what's available in the market whether it be good, bad or indifferent.
They do try to give some info on customer's experiences but general customer service incompetence isn't the same as going under.
I'd suggest that they dont exactly broadcast their imminent demise but have to tell Ofgem when they turn out their lights and shut the doors.
It really is down to Ofgem to monitor them a bit more closely and take action a bit earlier - perhap they do and we only hear about it when the company finally gives up or can't recover.Never under estimate the power of stupid people in large numbers0 -
Now waiting AGAIN for OFGEM to "persuade" somebody to become the "Supplier of Last Resort".
Can't see the others falling over themselves to inherit us, as I suspect, we will all be waiting to move onwards asap, as if it follows the recent pattern, the tariff the SOLR will put us on ,will be far from competitive:mad:
Just hope its not Octopus or First Utility - haven't yet managed to get either to close accounts opened after the failures of Iresa and Usio!
Biggest issue now will be that Xmas will intervene -could be stuck with the SOLR until well into January:(0 -
Can I ask can you just start a switch or does OFGEM have to issue a supplier first? I set my mum up with one select in April, and would like to get her shifted asap as regardless of what I tell her, she will be convinced the electric will be shut off, Drama is just the way she rolls :rotfl:0
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Commencing a switch before you are officially on board with another supplier risks the switch being rejected thus prolonging your wait.0
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Who knows how long it will take to line up a new supplier. We might not hear more until the new year.brewerdave wrote: »Now waiting AGAIN for OFGEM to "persuade" somebody to become the "Supplier of Last Resort".
Can't see the others falling over themselves to inherit us, as I suspect, we will all be waiting to move onwards asap, as if it follows the recent pattern, the tariff the SOLR will put us on ,will be far from competitive:mad:
Just hope its not Octopus or First Utility - haven't yet managed to get either to close accounts opened after the failures of Iresa and Usio!
Biggest issue now will be that Xmas will intervene -could be stuck with the SOLR until well into January:(0 -
brewerdave wrote: »Now waiting AGAIN for OFGEM to "persuade" somebody to become the "Supplier of Last Resort".
Can't see the others falling over themselves to inherit us, as I suspect, we will all be waiting to move onwards asap, as if it follows the recent pattern, the tariff the SOLR will put us on ,will be far from competitive:mad:
Just hope its not Octopus or First Utility - haven't yet managed to get either to close accounts opened after the failures of Iresa and Usio!
Biggest issue now will be that Xmas will intervene -could be stuck with the SOLR until well into January:(
I would be very interested to see statistics which detail which supplier the customers of a failed small supplier switch to. I think it would be a safe bet that the majority of them switch to other small suppliers.
The problem is not essentially created by OFGEM but by customer choice. We have to assume that currently small suppliers present a risk and decide to go with the Big Six who are pricier but safer.
I look right now at a comparison and the maximum I can save compared to my current EDF Easy Online Dec 19 is £57.08 per year. But all of them bar two are small suppliers. The two which are not small suppliers or are at least big enough to have to provide WHD are First Utility and Lumo. I can't have First Utility because I already have a smart meter and I can't have Lumo because I don't own my own home (it's shared ownership).
So there you go: I can save £57.08 by risking a small supplier or go with the safer option of a big six supplier. I went with the Big Six.
In conclusion, people should not blame OFGEM because they themselves made a bad choice!0 -
Who knows how long it will take to line up a new supplier. We might not hear more until the new year.
OFGEM have in the past appointed someone within 7 days of the announcement so I would expect that to continue.
Remember they first offer the deal as a trade auction so that takes a day or two to run but if no one is interested then they have the powers to make a company take on the bankrupt company's customers.0 -
I would be very interested to see statistics which detail which supplier the customers of a failed small supplier switch to. I think it would be a safe bet that the majority of them switch to other small suppliers.
The problem is not essentially created by OFGEM but by customer choice. We have to assume that currently small suppliers present a risk and decide to go with the Big Six who are pricier but safer.
In conclusion, people should not blame OFGEM because they themselves made a bad choice!
I disagree - this is a MoneySaving site after all!
1. we are being actively encouraged to switch by the Government to save money. Just looking at the comparison tables today, for my leccy usage , the cheapest Big 6 tariff would cost me £145 more pa. There are still many cheaper alternatives ,some of which would actually be cheaper than the OneSelect deal I was on. By inference ,you are saying that any of these is a "bad" choice.
2. OFGEM SHOULD (in my opinion) take responsibility for ensuring that the businesses that they issue licenses to ,are fit and proper businesses. And from the looks of various pronouncements lately, OFGEM themselves realise that!0 -
brewerdave wrote: »
2. OFGEM SHOULD (in my opinion) take responsibility for ensuring that the businesses that they issue licenses to ,are fit and proper businesses. And from the looks of various pronouncements lately, OFGEM themselves realise that!
Spark Energy failed after 11 years of trading. Ofgem could pressure test all 70 or so suppliers every year but this would require an army of staff. No doubt the cost of this ‘army’ would ultimately be passed on to consumers. PCWs do not have insider business knowledge: if they did, what could they LEGALLY do with it with the threat of being sued for reputational damage? Rather than passing on the costs of these failures to all consumers, Ofgem should be insisting that smaller suppliers are fully bonded. Yes, this would result in higher prices.0 -
Spark Energy failed after 11 years of trading. Ofgem could pressure test all 70 or so suppliers every year but this would require an army of staff. No doubt the cost of this ‘army’ would ultimately be passed on to consumers. PCWs do not have insider business knowledge: if they did, what could they LEGALLY do with it with the threat of being sued for reputational damage? Rather than passing on the costs of these failures to all consumers, Ofgem should be insisting that smaller suppliers are fully bonded. Yes, this would result in higher prices.
Wasn't suggesting that they should act as auditors for existing businesses -there are other bodies who do this - but surely some checks when a new supplier applies to be licensed, are only "common sense"? As you say ,some form of insurance bond seems logical -yes, it would increase prices but smaller operations should still be able to undercut the "competition" of the Big 6.0
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