Failed supplier Economy Energy tried to sell customers to E as it was fighting for survival
The owner of Economy Energy will not be able to move 30,000 of the failed supplier’s customers to another provider which she used to own as Ofgem issued another ban.
Ofgem said it had banned E (Gas and Electricity) from transferring any more of the customers they bought from Economy Energy in December.
Read more: Energy customers were hit by mystery meter readings
It said that the contract is likely to no longer be valid after Ovo Energy stepped in as a supplier of last resort for the customers of Economy Energy.
“Ofgem has issued the provisional order to prevent further harm and uncertainty being experienced by former customers of the failed supplier Economy Energy, whilst it investigates this transaction. In the meantime, customers are in the process of being fully set up with Ovo Energy,” the regulator said.
Lubna Khilji, who owns Economy Energy, ceased to be a person of significant control in E in 2016, records filed with Companies House in December last year show.
Earlier this month the Mail on Sunday revealed that the National Grid is suing Economy Energy after it claimed the supplier failed to pay a £12m bill for 300,000 smart meters.
Two other companies, Green Deal Marketing Southern and Access Install, who install smart meters, also took legal action against Economy in 2017 and 2018 over unpaid bills. The Green Deal lists E (Electricity and Gas), it’s owner Paul Cooke, and Lubna Khilji as co-defendants.
Read more: Economy Energy banned from taking on new customers amid Ofgem probe
Earlier today City PM revealed that several Economy Energy customers had been given mystery inflated meter readings in December as the company was fighting for survival.
In 2016 Ofgem opened an investigation into Economy Energy, E and Dyball Associates over a suspected anti-competitive agreement between the companies.