Energy supplier Iresa collapses leaving 100,000 customers in limbo

The UK’s cheapest and smallest energy supplier Iresa has collapsed and left almost 100,000 energy customers in limbo that has prompted calls for tests on new entrants to the market.

The energy regulator Ofgem said the customers in limbo would not see an interruption in their energy supplies and should wait to be assigned a new supplier.

“If you are an Iresa customer there is no need to worry as we will make sure your energy supplies are secure and your credit balance is protected,” said Rob Salter-Church, Ofgem’s interim executive director for consumers and markets.

Alex Neill, Which? managing director of home products and services, warned customers to look in their best interests and consider different options: “Remember, you don’t have to go with this new supplier, so do some research to ensure you’re getting the best possible deal for you.”

Iresa came bottom at a Citizens Advice ranking of energy companies’ customer service in June with a record 9,000 complaints per 100,000 customers. The company was banned from taking on new clients due to poor customer service.

There are over 60 energy suppliers in Britain and an increasing number of people are switching to smaller energy companies due the high prices of the big six firms. But according to The Guardian, medium sized suppliers such as First Utility and Cooperative Energy have warned that some small firms could soon collapse due to the rise in wholesale energy prices.