Energy & Recycling
Published: September 17, 2021 | Updated: September 18, 2021
“Customers do not need to worry” says Ofgem as Poole-based energy supplier ceases trading
Around a quarter of a million customers of a Poole-based energy supplier which is to cease trading have been told not to worry by the industry regulator.
Under Ofgem’s safety net, the energy supply of Utility Point customers will continue and outstanding credit balances of domestic customers will be protected.
Customers will be contacted by their new supplier, which will be chosen by Ofgem.
Utility Point supplied gas and electricity to about 220,000 customers.
The company, which employs about 100 people, was incorporated in 2017.
In the year to June 30, 2020, it made a pre-tax loss of £5.5m on a £113.5m turnover.
It announced it was to cease trading on the same day as another energy supplier, People’s Energy, which had around 350,000 domestic customers and around 1,000 non-domestic customers, also confirmed its closure.
Utility Point said the announcement was made with regret adding: “Customers need not worry, their supplies are secure and domestic credit balances are protected.”
In a statement to members on the company’s website, Co-Founder and Chief Executive Officer, Ben Bolt said: “Despite substantial interest and continued negotiations with several suitable parties and best efforts, recent international and national circumstances have created a perfect storm of events which has meant that Utility Point will cease trading and another supplier will be taking over your supply.
“All of us at Board level have been working hard towards a different outcome, and I wish I had better news to report to you today but regrettably in the end we weren’t able to overcome these external forces.
“Utility Point has undergone a remarkable evolution in the past three years as we’ve pursued our vision to become one of the nation’s leading utility companies, indeed rising to 15th biggest in the UK during this time.
“Previously I have commented that we have seen – and mastered – many challenging situations and I have always been so proud and inspired by the way our company has risen to these challenges – with flexibility, resilience, and courage, but current global events coupled with the ongoing Covid–19 situation has been a significant challenge and understandably so.
“Whether you’ve been with Utility Point for a few months or several years, I hope you know how much we valued your custom and you have enjoyed some of the small perks we have offered along the way. Thank you.
“The coming weeks will be difficult as we wind down operations, but I ask my team to continue to hold their heads high.
“They have done us proud and, I hope you will join me in wishing them all the very best in their future endeavours.”
Neil Lawrence, Director of Retail at Ofgem, pictured left, said: “Although the news that a supplier going out of business can be unsettling, Utility Point and People’s Energy customers do not need to worry.
“Under our safety net we’ll make sure your energy supplies continue.
“If you are a domestic customer with credit on your Utility Point or People’s Energy account this is protected and you will not lose the money that is owed to you.
“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 new tariff.”