Yü Group (YU. ) has been appointed as a ‘Supplier of Last Resort’ for Whoop Energy and Xcel Power Ltd (Xcel), taking on their electricity and gas customer books with immediate effect.
The Group, an independent supplier of gas, electricity and water to the UK corporate sector, has been appointed by The Office of Gas and Electricity Markets (‘Ofgem’) as a Supplier of Last Resort, an action taken by the government agency in the event of a supplier failure.
Whoop Energy and Xcel Power are the second and third suppliers, respectively, to collapse in this year as global gas prices remain high and volatile, leaving 536 customers to be absorbed.
Whoop Energy supplied gas and electricity to 262 customer accounts, of which 212 were non-domestic small and medium-sized enterprise (SME) customers and 50 domestic customers, across 401 meter points. Xcel supplied gas to 274 non-domestic customers.
Under Ofgem’s SOLR process, business customers transfer to a new supplier on a flexible, “deemed”, basis with a variable tariff reflective of current market conditions. The total contribution to Group revenues is expected to be approximately £150,000 per month.
Shares in Yu Group ticked up 0.98% higher this morning at 255p following the news.
Yü Group said it will integrate these new customers onto the company’s scalable platform; and certain industry processes will continue in the coming days to complete the transfer.
Bobby Kalar, Group Chief Executive Officer of Yu Group, commented: “I am very pleased to welcome customers of Whoop Energy and Xcel to Yü Group. We have already commenced migration onto our scalable operating platform ensuring the smoothest transition possible.”
He added that: “The award from Ofgem is further testament to the strength of our business with our strong foundations, proven platform and robust hedging strategy. This follows the award and subsequent seamless integration of Ampower in November 2021 and we are proud to be working with Ofgem to ensure a stable supply of energy for UK businesses.”
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