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Ofgem appoints British Gas to take on customers of Neon Reef, Social Energy Supply

Ofgem appoints British Gas to take on customers of Neon Reef, Social Energy Supply
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By Reuters
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LONDON - British energy regulator Ofgem has appointed British Gas to take on the customers of Neon Reef Limited and Social Energy Supply Ltd after they ceased trading earlier this month, it said in a statement on Monday.

More than 20 energy suppliers have collapsed since the beginning of September after Ofgem's price cap left them unable to pass on a spike in wholesale gas costs to customers.

Neon Reef supplies around 30,000 domestic electricity customers and Social Energy Supply has around 5,500 domestic customers.

Ofgem said any funds that current and former domestic customers of the suppliers had paid into their accounts would be protected, where they are in credit. Domestic customers will also be protected by the energy price cap with their new supplier. 

Earlier on Monday, Britain's Bulb said it expects to appoint administrators shortly, becoming the biggest UK energy supplier so far to run into trouble since the recent surge in wholesale gas and electricity prices. [L4N2SD2G4]

Britain's domestic price cap increased 12%-13% from Oct. 1 but wholesale prices have risen far higher since that cap was set in August.

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