Omni Energy warns it is ‘highly likely’ to cease trading

Omni Energy has told its customers that without a significant change to the cost of wholesale energy or a government intervention, it is “highly likely to cease trading” before the end of November.

The disruptor brand, which specialises in serving in prepayment meter (PPM) customers, said in an email that it has lined up a “switching partner” that is ready to transfer them to another supplier.

Utility Week understands that Ofgem has since spoken to Omni Energy and that the supplier is no longer switching customers away. Customers who object to the switch meanwhile can either contact Omni or their new supplier and cancel it.

An Ofgem spokesperson said: “Suppliers generally cannot switch customers away without their consent, except where a supplier sells some or all of its customer book as part of a trade sale to another supplier.

“In the event any supplier fails, Ofgem has robust systems in place and our safety net ensures customers’ electricity and gas supply continue and protects their credit balances.”

In an email to customers, the supplier said: “We know that this is a worrying time for many people and the news of suppliers going out of business is unsettling. Therefore, we are telling you now the likelihood of Omni Energy ceasing to trade, because we want you to be able to be in control of your energy supply.

“To support you and to make sure we minimise the impact to you we recommend that you switch to another supplier as soon as possible.

“To facilitate this we have a switching partner that is going to switch your energy to another supplier that is at the price cap like us. They will select an energy provider who is better placed to supply your energy.”

Outlining its rationale, Omni criticised the supplier of last resort (SoLR) process as “not effectively geared up” to support PPM customers as there is an “increased risk of self-disconnection” and “uncertainty” over who they should contact if they encounter any meter issues or need additional support credit.

However, the company also advised customers not to worry if they do not switch as Ofgem is “well-rehearsed in dealing with these situations” and that the regulator will ensure supply is still protected if it ceases to trade. It said customer who do not want to switch should let it know by responding to the email.

“We hope you appreciate the candid approach we are taking by talking to you about the current situation,” it concluded. “We’ve invested everything into making prepay better for over three years starting up Omni Energy and want to keep our customers in the loop about the current situation.

“There is still hope that we may survive and our mission could continue. We’d love for you to consider returning as a customer when the wholesale cost of energy reduces, or the UK energy market is structured in a way to support smaller challenger energy suppliers.”

So far this year 12 companies have exited the market via the SoLR process following soaring wholesale costs.

Most recently the market saw a triple supplier failure with the exit of Igloo, Symbio and Enstroga Energy.