Solarplicity Supply Ltd, a company that supplied 100% renewable electricity to residential and business customers in the UK, has ceased to trade.
In July, the firm transferred a large number of customers to Toto Energy. UK energy regulator Ofgem said on Tuesday it will be selecting a new supplier for the roughly 7,500 domestic and less than 500 business customers that remained with Solarplicity. These are protected under Ofgem’s safety net.
Solarplicity Supply was a licensed energy supplier within a larger group, whose other businesses include the installation and supply of photovoltaic (PV) panels, and smart metering activities. In a statement on its website, the company said the rest of the group is not affected.
The Guardian said this is the 13th energy supplier in the country to collapse since early 2018. The company itself stated that “the large number of small energy suppliers and the harsh way the market is regulated make it difficult for companies like Solarplicity to survive.” It also blamed Ofgem for preventing it from raising the funds it needed, which has led to the decision to cease trading.
A provisional order by Ofgem in February banned Solarplicity from taking on new customers and increasing vulnerable customers’ direct debits, because of a “poor switching process and customer service”. The supplier made certain improvements so the regulator decided not to confirm the order. In July, however, it confirmed a different provisional order directing Solarplicity to pay outstanding amounts owed to feed-in tariff (FiT) generators. The enforcement action has ended after the supplier ceased trading.
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