Energylinx News

July 27, 2018

Iresa has ceased trading

At one point Iresa was the cheapest energy supplier on the market and thousands of savvy switchers moved to them to save money. They struggled to cope with the demands which was evident in their customer service, as they fast became the most complained about energy supplier.

The message from the energy regulator, Ofgem, as another energy supplier goes bust? Don't worry. Ofgem has told 100,000 Iresa customers that their energy supply will continue as normal and any outstanding credits will be protected.

Ofgem will appoint a new supplier to take on Iresa's customers and has urged the affected customers not to switch energy suppliers until a new energy supplier has been chosen.

Ofgem has also told Iresa customers to take a meter reading as soon as possible and wait until your new energy supplier contacts you individually.

Why did Iresa fail?

In March, Ofgem banned Iresa from taking on new customers after reports that their current customers faced unexpected direct debit increases, one-off payment requests for hundreds of pounds and suffered difficulty contacting Iresa.

This wasn't the first customer ban Ofgem had imposed on Iresa. In early 2016, Ofgem found that customers were having trouble getting in touch with the energy supplier and banned them from taking on any new customers until the issues were resolved.

As a result of their poor customer service, at the end of June Iresa came bottom of Citizens Advice's recent energy companies' customer service league table, with a record high of 9,000 complaints per 100,000 customers.

Iresa customer? Don't panic

The important thing now is for Iresa customers to stay still and make a note of their current meter readings.

Ofgem will appoint a new supplier who will honour and protect any credit balances. If you are not happy with your new supplier once you have spoken to them, then you are free to arrange a switch to a new supplier.

Update 31st July 2018

Ofgem appointed Octopus Energy to take on Iresa's customers after they ceased trading. If you have any questions about this, you can find out more on the Ofgem website.

Energylinx offers a free and impartial energy comparison and switching service. You can do a comparison on our website or you can call one of our advisors on 0800 849 7077. We are open Monday to Friday 9am - 6pm and Saturday 9am - 3pm.

Posted on July 27, 2018 at 01:10 PM