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Small-scale energy provider Gen4U, which appeared to be in financial difficulty last month, has ceased trading and Octopus Energy has been appointed as supplier of last resort (SoLR).
Octopus will take on approximately 500 customers from the Bradford-based company over the next few days.
Greg Jackson, chief executive of Octopus Energy, said: “Even when the number of customers affected is small, it is important that every one of them gets a good service.
“We will migrate Gen4U’s customers onto our system as quickly as possible, so they can either switch to a supplier of their choice or stick with us to get long term good value and and exceptional customer service.”
Gen4U launched in October 2016 and offered tariffs for credit and prepayment domestic customers, as well as also offering non-domestic supply contracts.
The company was reportedly “sporadically active” according to consultancy firm Cornwall Insight.
It withdrew its tariffs from the market first in April 2017, again in June to be reinstated in October 2017, and for a final time in April this year.
Last month code administrator Elexon announced Gen4U had defaulted under the Balancing and Settlement Code (BSC).
The BSC, which Elexon is responsible for, is a legal document which defines the rules and governance for the balancing mechanism and imbalance settlement processes of electricity in Great Britain.
Octopus has, in recent months, taken on well-over 100,000 new customers following the demise of Iresa and the acquisition Affect Energy.
Iresa ceased trading on 27 July and its 90,000 customers were also taken on by Octopus which was named by the regulator as the supplier of last resort.
Earlier this month it was revealed Octopus also acquired West Sussex-based Affect Energy for an undisclosed seven-figure sum.
This deal will see Octopus take on 22,000 customers from Affect, after completing the purchase on 31 August.
Meanwhile non-domestic provider National Gas and Power (NGP) had its supply licence revoked by Ofgem as it was unable to pay debts of more than £200,000.
It ceased trading on 26 July, with around 80 customers being taken on by Hudson Energy.
Last week Ofgem launched a statutory consultation on changes to the supply licence conditions that underpin the supplier of last resort (SoLR) arrangements.
The regulator is principally focusing on the process for making a claim for a last resort supply payment (LRSP).
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