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City A.M: Economy Energy shuts down weeks after denying bankruptcy reports

Over 230,000 customers were left in limbo as Economy Energy closed down, only weeks after denying it was on the brink of collapse.

by Anton Hagelund

January 08, 2019

Economy Energy, which was banned from signing up new customers just days ago, became the ninth energy company to go bust in the last 12 months.

“We have seen a number of supplier failures over the last year and our safety net procedures are working as they should to protect customers,” said Philippa Pickford, Ofgem’s director for future retail markets.

However Jane Lucy, who founded switching service Labrador, said Ofgem was not doing its due diligence on suppliers.

“Energy suppliers should have to validate the financial health of their business, given that there are wider issues surrounding the obtaining of licences in general. It is only through proper regulation that the industry can prevent further closures,” she said.

Read the full article here.

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