Energy customers hit by collapse of People's Energy and Utility Point - BBC News
People's Energy and Utility Point, which supply power to more than 500,000 people, have ceased trading.
Customers have been advised not to panic after two energy suppliers announced they had ceased trading.

One of the firms is Edinburgh-based People's Energy, which supplies gas and electricity to about 350,000 homes and 1,000 businesses.

The other is Dorset-based Utility Point, which has 220,000 domestic customers.

National advice service Advice Direct Scotland said energy supplies would continue for those affected.

It also said customers would not lose any money owed to them.

Consumers have also been advised not to immediately switch to a new supplier as a new company will be chosen by regulator Ofgem.

People's Energy was formed in 2017 by East Lothian couple David Pike and Karin Sode following a crowdfunding campaign.

The firm promised to return profits to its customers in a transparent, ethical way of working.

In August last year, it announced plans to create 100 new jobs with an expansion into the Borders.

People's Energy was co-founded in 2017 by Karin Sode and David Pike

In a statement on its website, People's Energy said: "Please rest assured that your energy supply is secure and all account credit balances are protected for our domestic customers.

"This includes any recent top-ups that were made as part of the seasonal weighting initiative."

It added: "We are truly sad that we weren't able to make this community-focused approach to energy supply work.

"Thank you to those of you who supported our mission from early on. We are very sorry about the inconvenience and disruption this will cause our customers."

In a similar announcement on its website, Utility Point said customers "need not worry, their supplies are secure and domestic credit balances are protected".

Advice Direct Scotland, which runs the national energyadvice.scot service, said customers affected "should not panic".

Spokesman Colin Mathieson said: "While this news can be worrying for consumers, it's important to remember that you won't be cut off if your energy supplier has gone out of business - so you don't need to do anything right now.

"The gas and electricity regulator Ofgem will arrange for your account to be transferred to a new supplier.

"There won't be a break in your supply when it's transferred over, although the price you pay for your energy might go up - and that's when you can consider switching supplier, and you won't be charged an exit fee to do so."

Further information about the collapse of the energy firms can be found on the Ofgem website.