Solarplicity becomes fifth supplier of 2019 to cease trading

Solarplicity Supply has become the fifth supplier of 2019 to cease trading, industry regulator Ofgem has announced this afternoon (13 August).

The energy retailer, which had around 7,500 domestic customers, had been subject to a provisional order by Ofgem for several months.

Ofgem will now choose a new supplier to take on the thousands of customers under the supplier of last resort (SoLR) process.

Philippa Pickford, the regulator’s director for future retail markets, said: “Solarplicity 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’re doing this our advice is to ‘sit tight’ and don’t switch. 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.”

Speaking in response to the announcement, Solarplicity’s chief executive David Elbourne said:“Solarplicity today announces that it will exit its regulated energy supply business, Solarplicity Supply Limited, with immediate effect.

“Its experience since the acquisition of the retail energy supply business LoCO2 in May 2017, has convinced the Solarplicity board that there is no viable future as a small-scale energy supplier in today’s overcrowded, highly regulated market – which, as others are finding-out, is simply not sustainable at this scale.

“It deeply regrets the impact that this decision will have on its customers and loyal suppliers – it has not been taken lightly.”

The Energy Ombudsman said it had received 3,324 complaints about Solarplicity so far this year, including 583 in July alone.

The corresponding figure for the whole of 2018 was 1,035.

Matthew Vickers, chief executive at the Energy Ombudsman, said billing, switching and customer service had been the main drivers of complaints about Solarplicity in recent months.

He said: “From what we have seen in the complaints that we handle, Solarplicity failed to provide a good level of customer service.

“Its collapse doesn’t come as a huge surprise, but it will be another source of stress for the company’s customers – many of whom have already experienced problems.

“In addition to high complaint volumes for a company of its size, we have also seen a significant problem with remedy implementation, whereby Solarplicity fails to take the steps we require of it to put things right for the customer within the specified timeframe.

“This includes failure to make the necessary goodwill gesture payments and refunds, which has been a concern of ours for some time.

“We are keen to work closely with whichever supplier is appointed to take on Solarplicity’s customers in order to reach the best possible outcome for consumers.

“It is worth noting, however, that Ofgem’s SoLR process does not cover complaints to the ombudsman.

“This means that if a consumer complains to us about a supplier that subsequently ceases trading, there is no formal mechanism that enables the complaint to be resolved or the consumer to receive redress.

“The consumer could either be awaiting our decision on their case or, if we have already upheld their complaint, expecting action from the supplier to put things right, such as a financial award or an apology. In both scenarios, consumers who have escalated their complaint to us unfortunately won’t receive redress.”

The news follows the announcement that Brighton-based Toto Energy acquired the majority of the failed supplier’s customers.

Earlier this month it was revealed that several winding up orders had been issued by HMRC against Solarplicity’s businesses.

On 6 August Ofgem confirmed a provisional order against Solarplicity Supply after the company failed to make a number of feed-in tariff (FIT) payments.

A day later Utility Week revealed that Solarplicity was “exiting the utilities services business” after a number of its companies went into administration.

A company spokesperson said at the time: “We can confirm that Solarplicity is exiting the Utility Services and SPTMY business and restructuring the company to focus on our core operations in renewable energy.

“First and foremost we are a renewable technology business striving to fight fuel poverty and make renewable energy available to everyone.

“We will be announcing exciting new developments for our business as well as for our retail energy customers in the coming days.”

Tough trading conditions have already seen four other suppliers exit the market this year – Economy Energy, Our Power, Brilliant Energy and Cardiff Energy Supply.