Our Power has ceased to trade. The Edinburgh-based supplier was set up in 2016 with backing from the Scottish Government. It was owned by local authorities and social housing providers and had hoped to turn a profit by 2020, though its model was not to distribute profits.
Ofgem said it would now appoint a supplier of last resort to take on Our Power’s customers, thought to be around 38,000 households.
Our Power is the latest in a line of smaller independent firms to cease trading as rising wholesale prices have made risk, pricing and cost management even more important. Some suppliers have also failed to put aside the money they are supposed to pay into renewables levy schemes, with several going bust owing millions.
Industry commentators believe more suppliers will struggle to stay afloat, with other local authorities potentially in trouble.
Ofgem is now moving to tighten checks on new market entrants.