Two domestic suppliers cease to trade

Green Network Energy and Simplicity Energy have announced they are ceasing to trade. The two energy suppliers are the latest to be added to the list of suppliers that went into receivership. Green Network Energy has around 360,000 domestic customers as well as a smaller number of non-domestic customers, while Simplicity Energy is serving around 50,000 domestic customers.

Ofgem said it will appoint a new supplier for the companies’ customers. The advice is to sit tight if you are a customer and we would wholly agree. No doubt, losses will be eventually shared across the industry and to many of its consumers as is ever the case.

Ofgem relaxed licencing rules some years ago to encourage new entrants into the marketplace, so give consumers more choice but in doing so, have also exposed the industry to covering the losses of those that fail. It is currently unknown what the exact causes were of the demise of the two companies.