Co-operative Energy takes on GB Energy customers

Following the collapse of GB Energy at the weekend, all its 160,000 customers are being transferred to Co-operative Energy on November 30, 2016.

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If you are a GB Energy customer, you will be contacted by Co-operative Energy in the next few days.

Gas and electricity supplies have been maintained to all customers throughout, and there will be no interruption to supply during the transfer of accounts to Co-operative Energy.

Crucially, Co-operative Energy has committed to honouring GB Energy customers' existing terms and conditions.

This means GB customers will continue to pay the same price as previously, whether they were on a variable rate or fixed rate tariff.

Those on a fixed tariff will continue with that fixed deal.

Co-operative Energy is part of The Midcounties Co-operative, the UK's largest independent co-operative.

The firm says customer enquiries will be handled by the GB Energy customer service team, which can be reached on 0800 644 4451. Information has also been posted on the GB Energy website.

If you had a credit balance with GB Energy, this will be honoured under the terms of the transfer. The cost will be borne by Co-operative Energy and by Ofgem, the energy market regulator which brokered the deal.

Ofgem will raise funds through a levy on all other energy suppliers.

Current GB Energy customers will have the credit amount lodged into their account, while old customers will be refunded in due course.

If you owe money to GB Energy, the debt will not transfer to your new Co-op account.

However, that does not mean the debt will disappear. The administrators of GB Energy will contact you in due course to explain how and when the debt will need to be paid.

What you need to do

GB Energy’s customers, who will automatically transfer to Co-operative Energy, should sit tight and wait for Co-op to contact them.

If you’re a customer, do not cancel your direct debit. You’ll be told what to do about this when contacted.

If you’ve already cancelled your direct debit, don’t worry – once again, you’ll be given full instructions on what to do.

You should not think about switching your account until you are up and running with the Co-op. As the new tariff will match your old one, you may decide to stay put.

However, if you do decide to switch – either to a different Co-op tariff or to a different supplier – you should shop around for the most competitive deal.

No exit fees will be levied if you decide to switch.

Why did GB Energy collapse?

GB Energy blamed its collapse on “swift and significant” increases in global wholesale energy prices.

Coupled with this it says it did not have trading agreements in place to buy sufficient energy in the wholesale forward markets, which it would have needed to manage increasing wholesale prices.

GB Energy was one of a clutch of energy providers that opted not to use comparison sites such as MoneySuperMarket to switch customers.

However, the rules governing the way comparison sites operate meant that our results tables had to include GB Energy tariffs.

 

Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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