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Martin Lewis has warned thousands of Brits not to switch their energy suppliers after two firms collapsed last week.
Green Network Energy and Simplicity Energy ceased trading – initially leaving their 410,000 households without an energy supplier.
But energy regulator Ofgem said it would still protect the customers by switching them automatically to another supplier.
It has since been confirmed that customers of Green Network Energy have been transferred to EDF Energy, starting from yesterday (Sunday, January 31), but the 50,000 Simplicity customers are yet to be transferred.
And, according to Martin, it is crucial people do not manually change until this is achieved.
Speaking on his ITV show, The Martin Lewis Money Show, the financial whizz explained: “You don’t need to do anything yet.
“Your supplier will remain the same for now, and, in a few weeks, Ofgem, the energy regulator, will automatically move you to a new company with a replacement tariff.”
“Do not panic. Your credit is protected and you won't be locked in a new deal.
“Once you've switched across, you'll be able to shop around for a better tariff. But right now, you need to wait until Ofgem has found a replacement supplier.”
He warned that if people do try and switch before Ofgem moves them, it could lead them to being stuck in a “hole” – which takes a long time to sort out.
But the new tariff has to have exit penalties so you can easily switch once the time is right.
Green Network Energy, with 360,000 customers, and Simplicity Energy, 50,000, join the likes of Tonik, Breeze, Economy Energy, Solarplicity and Spark Energy in collapsing in recent months, Mirror Online reports.
Philippa Pickford, Ofgem's director of retail, said: “Green Network Energy and Simplicity 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 are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime.
“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.”
- ITV
- Martin Lewis
- Money
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