Small energy supplier OneSelect stops trading – what you need to know
OneSelect, a small supplier with 36,000 domestic customers, has become the latest energy firm to stop trading. If you're affected, your supply will continue as normal and any outstanding credit balance you have is protected.
Energy regulator Ofgem will now look to appoint a new supplier to take on OneSelect's customers. Once this happens, the new supplier will contact you to let you know what happens next.
In the meantime, Ofgem says customers should sit tight and not try to switch away from the failed supplier.
I'm a OneSelect customer – what should I do?
If you're a OneSelect customer, Ofgem's advice is:
- Do not switch to another energy supplier at this stage.
- Take a meter reading, ready for when your new supplier contacts you.
Ofgem says this will make the process of transferring customers over to a new supplier, and paying back any outstanding credit balances, as smooth as possible.
More information will follow from your new supplier once one has been appointed in the coming days.
If you need any further support, OneSelect is advising customers to contact Ofgem – the regulator has a comprehensive set of FAQs here – or call Citizens Advice on 03454 04 05 06.
Will I keep my tariff – and will my bills go up?
Ofgem says that your current contract – whether you're on a fixed or variable tariff – will end when you join the new supplier, and you'll be placed on what's known as a 'deemed' tariff. These are often more expensive.
However, in the past we've seen some suppliers deciding to honour existing tariffs when taking over from a supplier that's ceased trading, so it is possible this could happen.
Once the new supplier contacts you, check if the deal you are being offered is the cheapest available to you.
Use our free Cheap Energy Club to do a full comparison and find your cheapest tariff. You won't be charged exit fees if you decide to switch.
I'm in credit with OneSelect – how do I get it back?
Ofgem says that once a new supplier has been appointed, it will pay back any outstanding credit you may have.
Once the regulator has appointed the new supplier, you will be contacted to explain how this will work. Ofgem says you should take a meter reading and a note of your balance, and wait for the new supplier to get in touch.
If you've recently switched or you're currently in the process of switching away from One Select, any remaining credit is protected under Ofgem's 'safety net' scheme.
I'm paying back debt to OneSelect. Will I pay this to the new supplier instead?
This depends on whether the new supplier arranges to take on debts owed to OneSelect. If not, you may still have to continue to pay it back to OneSelect or an administrator if one is appointed to run what remains of the company. Either way, you will have to pay what you owe.
Once a new supplier is appointed by Ofgem, it will explain how things will work in practice.
Should I cancel my direct debit with OneSelect?
The new supplier should be able to automatically move your direct debit over once it's appointed – though Ofgem says you're free to stop this and cancel your direct debit before the new supplier contacts you if you want to.
When the new supplier does contact you, it will explain how it'll take on your account, including direct debit arrangements.
I'm already in the process of switching from OneSelect. Will this still go through?
If you have a switch in progress, you'll continue to be moved to the new supplier of your choice.
If you're in the process of switching to OneSelect, Ofgem says it should go through as planned and you'll then be moved over to the supplier that the regulator chooses to take over.
What does Ofgem say?
Ofgem's interim director for future retail markets Philippa Pickford said: "Our message to energy customers with OneSelect is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected."
She added: "We have seen a number of supplier failures this year and our safety net procedures are working as they should to protect customers."
Get Our Free Money Tips Email!
Have your say
This is an open discussion and the comments do not represent the views of MSE. We want everyone to enjoy using our site but spam, bullying and offensive comments will not be tolerated. Posts may be deleted and repeat offenders blocked at our discretion. Please contact email@example.com if you wish to report any comments.