Octopus Energy, a UK-based energy firm, is reportedly taking on 580,000 clients of Avro Energy, who were left stranded when the latter went bust last week. Additionally, it is also anticipated that Octopus may make a move for another operator, Bulb Energy.
According to credible sources, UK regulator, Ofgem, chose Octopus to take over supplying customers of Avro Energy following what was labelled as a competitive process to secure the best possible deal as the UK gas problem continues to cause havoc on the industry.
Octopus had 2.5 million users before the announcement, but the recent announcement has taken this number up to 3.1 million. In a letter to the new consumers, the company stated that it has a good track record when it comes to large customer migrations and reassured consumers that their energy supply will not be interrupted or impacted.
Last week, with the collapse of Avro Energy and another company, Green, which had more than 250,000 customers, the number of providers that have crumbled under the weight of record gas market rates has risen to seven in just over six weeks, affecting 1.5 million homes.
According to Ofgem, the switch from Avro to Octopus will begin immediately, and while the news may be disconcerting, consumers need not be concerned. Especially considering that outstanding credit balances, which includes money owed to both former and current Avro users, would still be honored.
Octopus will be taking over Avro's clients through Ofgem's supplier of last resort (SoLR) mechanism.
Citizens Advice's head of energy policy, Gillian Cooper, stated that Octopus must continue to assist vulnerable Avro customers when they switch suppliers.
According to speculations, Octopus is one of the providers that may explore bidding for Bulb, a competitive challenger brand. Bulb, which has 1.7 million users and lost £63 million in the year ended March 31, 2020, is now looking for new investment.