Just Energy Sub. Acquiring Customers From Defaulting Retail Supplier

U.K. regulator Ofgem announced that it has chosen Green Star Energy, whose ultimate parent is Just Energy, to take on supplying the customers of U.K. retail supplier Future Energy, which Ofgem said went out of business last week.

"This follows a competitive process run by Ofgem to get the best deal possible for Future Energy's customers," Ofgem said

Ofgem had said last week that Future Energy, a regional energy supplier, was serving about 10,000 domestic customers mainly in the north east and Yorkshire

Green Star Energy is offering Future Energy's customers the same price as they were paying before, both for customers on fixed and variable tariffs. The tariff rates will be honored until September 30 this year.

Green Star Energy will honor all outstanding credit balances, including money owed to both current customers and to past customers of Future Energy. For current customers, any credit on their account will be used to offset future energy use. Past customers need to contact Green Star Energy directly for a refund.

Ofgem said that the cost of protecting customers' credit balances will be largely met by Green Star Energy, and the rest will be covered by the safety net put in place by Ofgem. This is funded by a levy spread across all energy suppliers. Ofgem's safety net allows suppliers to recover the cost of credit balances by a levy across all suppliers.

Current and former customers who owe money, or are in debit to, Future Energy will not owe money to Green Star Energy. Instead, they will be contacted by Future Energy's administrators who will talk to them about repayment arrangements.

"Our advice to customers is to sit tight and wait until Green Star Energy contacts them. Then, if they wish to change their tariff, they should ask Green Star Energy to switch them to another deal, or shop around. They won't be charged exit fees," Ofgem said

Green Star Energy is a residential trading name of Hudson Energy Supply UK Limited. Established in 2013, Green Star Energy supplies over 300,000 domestic customers with gas and 100% renewable electricity across the United Kingdom, Ofgem said