Hub Energy ceases Trading

Ofgem broke the news of Hub Energy’s closure on Monday by posting about the suppliers cease of trading on Twitter.

Hub Energy launched in 2017 with the intention that it would become a low-cost supplier of 100% renewable electricity and carbon-neutral gas. Part of Gulf Gas and Power, a global fuel and oil company with over 100 years of experience, it was rebranded to Hub Energy in February this year.

Hub Energy scored well with consumer groups and boasted that it was proud of its customer service levels and what they described as market-leading online tools. It was also regarded as a well-run environmentally friendly energy supplier.

It seems the supplier was a casualty of record-high wholesale energy prices and the highly competitive energy supply market.

Its 6,000 domestic customers will now be put onto the Supplier of Last Resort scheme where any outstanding credit balance will be protected and a new energy supplier will be appointed.

A statement on Hub Energy’s website stated: ‘HUB energy is ceasing to trade. Ofgem, the energy regulator, is appointing a new supplier for its customers.

Customers need not worry; their supplies are secure and domestic credit balances are protected.

Ofgem’s advice is not to switch, but to wait until they appoint a new supplier for you. This will help make sure that the process of handing customers over to a new supplier, and honouring domestic customers’ credit balances, is as hassle-free as possible for customers.’

Neil Lawrence, Director of Retail at Ofgem, said:

“I understand that a supplier going out of business is unsettling for customers, however, Hub Energy customers do not need to worry. Under our safety net, we’ll make sure your energy supplies continue and if you are a domestic customer and have a credit on your bill with Hub this is protected, and you will not lose the money that is owed to you by Hub.

“Ofgem will now choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. 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.”

Also read: Worries grow over possible wave of small energy supplier failures in October

Update 13/08/2021 - E.ON Next has been appointed to take on failed supplier Hub Energy’s 15,000 customers.

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