Brilliant Energy, a small energy supplier has ceased trading. The company has 17,000 domestic customers. It is the latest smaller supplier to fold in recent months, including One Select, Extra Energy and Spark Energy. Brilliant Energy has an announcement on its website as follows:
Brilliant Energy is ceasing to trade. Ofgem, the energy regulator, is appointing a new supplier for its customers. Customers need not worry, their supplies are secure and credit balances are protected. Ofgem’s advice is not to switch, but to sit tight and wait until the new supplier has been appointed. This will help make sure that the process of handing customers over to a new supplier, and honouring credit balances, is as hassle free for customers as possible.
Ofgem is selecting a new supplier for its 17,000 customers. The energy supply to these customers will continue. The advice of Ofgem is to be patient and wait for a new supplier to be appointed. Customers of Northumbria Energy are also affected as Brilliant Energy supplies these customers under what is known as a ‘white label arrangement’.
In total, around one million customers have been affected by smaller energy firms going bust since the start of 2018. Ofgem is bringing in new rules to reduce the number of energy supplier failures.
Brilliant’s exit from the market follows that of Coventry-based Economy Energy and Scottish not-for-profit Our Power in January 2019, which had 235,000 and 38,000 customers respectively.
For example, one of the proposed changes is that new energy suppliers must have enough capital to sustain themselves for at least a year and provide evidence of such financial backing.