Small supplier Eversmart Energy stops trading – what you need to know
Eversmart Energy, a small energy supplier with about 39,000 domestic customers, has stopped trading. If you're a customer, your energy supply will continue as normal – here's what else you need to know.
Update Tuesday 10 September: Ofgem has appointed Utilita Energy to take on customers of Eversmart Energy. See Utilita's website for full information.
Energy regulator Ofgem says it will choose a new supplier to take on Eversmart Energy's customers as soon as possible, but its advice is not to switch yet if you're a customer.
Your energy supply will not be affected, and if you're a prepayment customer you can carry on topping up your meter. If you have an outstanding credit balance, Ofgem says this will be protected and you should get your money back.
I'm an Eversmart Energy customer – what should I do?
If you're an Eversmart Energy customer, Ofgem's advice is:
- Do not switch to another supplier until a new one has been appointed and has contacted you.
- 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 next week or two.
If you need further support, Eversmart Energy is advising customers to check the Ofgem website – the regulator has a comprehensive set of FAQs here – or call Citizens Advice on 03454 040506.
I'm on prepay – can I still top up?
According to Ofgem, if you've a standard prepayment meter, you'll be able to top up as normal for now, then once it announces a new supplier, you'll get a new top-up device.
If you've a smart prepayment meter, Ofgem says you'll be able to top up "for a short while". However, your meter may – "if required" – be switched to 'credit mode' to allow your supply to continue without the need to top up. When the new supplier is appointed, it will discuss with you whether you want to go back to a prepayment tariff.
Will I keep my tariff – and will my bills go up?
Ofgem says 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. This is usually the supplier's standard tariff and often more expensive.
Once the new supplier contacts you, check if the deal you are 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 Eversmart Energy – 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. You will be contacted to be told 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 Eversmart Energy, any remaining credit is protected under Ofgem's 'safety net' scheme.
I'm paying back debt to Eversmart Energy. Will I pay this to the new supplier instead?
This depends on whether the new supplier arranges to take on debts owed to Eversmart Energy. If not, you may still have to continue to pay it back to Eversmart Energy or an administrator, if one is appointed to run what remains of the company. Either way, you'll 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 Eversmart Energy?
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 Eversmart Energy. 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.
What does Ofgem say?
Ofgem's director for future retail markets Philippa Pickford said: "Eversmart Energy customers do not need to worry, as under our safety net we'll make sure your energy supplies are secure and domestic customers' credit balances are protected.
"Ofgem will now choose a new supplier for you and whilst we're doing this, our advice is to 'sit tight' and don't switch. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your new tariff."