British Gas takes on collapsed energy firm's customers

Regulators have appointed British Gas to take on customers hit by the collapse last week of Edinburgh-based power supplier People's Energy.

The move secures supplies for about 350,000 UK homes and about 1,000 businesses.

Regulator Ofgem said outstanding credit balances, including money owed to both existing and former domestic customers of People's Energy, would be honoured.

Customers will be contacted next week about the changes, it added.

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The announcement comes amid fears for struggling energy companies and soaring bills for customers.

The UK's sixth largest energy company, Bulb, is seeking a bailout, while four smaller firms are expected to go bust in the coming days.

'No need to worry'

Ofgem director of retail Neil Lawrence said: "I am pleased to announce we have appointed British Gas as the new supplier for customers after People's Energy entered insolvency.

"We understand that this news may be unsettling for customers, however, they do not need to worry.

"Their energy supply will continue as normal, and all domestic customer credit balances held on their accounts will be protected by British Gas."

He added: "Your energy supply will not be interrupted. British Gas will be in contact with customers next week with next steps.

"Once transferred to British Gas, customers can ask to be put onto another tariff, but should customers wish to switch, we advise waiting for the transfer from People's Energy to be completed."

People's Energy was formed in 2017 following a crowdfunding campaign. The firm aimed to return profits to its customers in a transparent, ethical way of working.