Nov 29 Co-operative Energy has been chosen to
supply customers of bankrupt GB Energy, British energy regulator
Ofgem said the company will honour all outstanding credit
balances for present and past customers.
Britain's Big Six energy suppliers, EDF Energy,
Innogy's Npower, E.ON, Scottish Power
, SSE and Centrica's British Gas, had
earlier bid in an Ofgem tender to supply the 160,000 customers
after GB Energy went bankrupt last week, sources told Reuters.
Co-operative Energy is offering GB Energy's customers the
same price they were paying before, both on fixed deals and on
standard variable tariffs, Ofgem said in a statement.
The cost of protecting customers' balances will be met
partly by Co-operative Energy and the rest from an Ofgem safety
net funded by a levy spread on all energy suppliers.
Ofgem updated its rules last month, allowing any supplier
stepping in to take over customers of a bankrupt supplier to
recoup the cost of reimbursing outstanding customer credits by
increasing energy bills.
(Reporting by Kanishka Singh; Editing by Ruth Pitchford)