Energy watchdog Ofgem has appointed Shell Energy to take on Green Supplier Ltd鈥檚 255,000 customers following the firm鈥檚 collapse last week.
Newcastle based Green, which employed 185 people at its office in The Core, went out of business after the spike in gas prices put massive pressure on the sector.
Ofgem has appointed Shell Energy to take on approximately 255,000 of Green鈥檚 domestic customers, and a small number of non-domestic customers.
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It follows a competitive process run by Ofgem to get the best deal possible for customers.
Outstanding credit balances, including money owed to both existing and former domestic customers of Green Supplier Limited will also be honoured. Domestic customers will also be protected by the energy price cap with their new supplier.
Customers of Green Supplier Limited will be contacted over the coming days about the changes. If customers wish to switch supplier, they can shop around but are advised to wait until the transfer has been completed. Customers will not be charged exit fees if they decide to switch to another supplier.
Neil Lawrence, Ofgem鈥檚 director of retail, said: 鈥淚 am pleased to announce we have appointed Shell Energy for the customers of Green Supplier Limited. We understand that this news may be unsettling for customers, however they do not need to worry. Their energy supply will continue as normal, and customer credit balances will be honoured.
鈥淪hell Energy will be in contact with customers over the coming days with further information. Once the transfer has been completed, customers can switch if they wish to.鈥 The company had been working with business advisors Alvarez & Marsal to prepare for insolvency, having previously claimed it had not received any support from Government.
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In a statement released by the firm, Green rejected suggestions from Business Secretary Kwasi Kwarteng that it was guilty of 鈥渂ad business practices鈥 and instead that it had been a victim of unprecedented conditions in the energy market and 鈥渟everal other factors outside of Green鈥檚 control鈥.
The statement said: 鈥淕reen fears that smaller energy suppliers are being left behind by the Government, with rescue packages being put in place for larger suppliers and for private discussions to be held with the Business Secretary.
鈥淭here is a position in Government and Ofgem that smaller suppliers should be left to fail, despite the unprecedented increases in wholesale electricity and gas, the cost of failed suppliers being mutualised across the industry, and an outdated price cap methodology forcing smaller suppliers to sell at a loss.鈥
Avro Energy also collapsed last week, with the firm's customers now moving to Octopus Energy.
