Rebel Energy Supply Limited

Rebel Energy Supply Limited was a UK-based energy supplier that offered gas and electricity to residential customers, with a particular focus on affordable pricing and renewable energy options. The company positioned itself as an independent supplier that aimed to disrupt the traditional energy market by offering fairer, more transparent prices and promoting sustainability.

However, Rebel Energy ceased trading in October 2022 as part of a series of failures of smaller energy suppliers during the energy crisis in the UK. The company was unable to cope with the dramatic increase in wholesale energy prices, which left many small and mid-sized energy providers struggling to stay afloat.

Key Points about Rebel Energy:

1. Affordable and Transparent Pricing:

   • Rebel Energy was known for offering simple, transparent pricing, and aimed to provide lower-cost energy options for customers compared to larger, traditional energy companies.

2. Green Energy Focus:

   • The company promoted renewable energy sources as part of its offering, providing electricity generated from 100% renewable sources like wind and solar power. This aligned with the growing demand for sustainable energy options.

3. Customer-Centric:

   • Rebel Energy’s focus was on customer service, offering a more personalized approach compared to larger providers. They emphasized low customer complaints and better communication with their users.

4. Failure in the Energy Crisis:

   • Like many smaller suppliers, Rebel Energy was severely impacted by the energy price crisis that began in 2021 and escalated in 2022. The sharp rise in gas prices, combined with the limited margins in the UK’s regulated energy market, led to several smaller companies going out of business.
   • Rebel Energy failed to adapt to the soaring wholesale prices, which left them unable to keep offering competitive tariffs or secure enough supply at reasonable rates.

Aftermath: What Happened When Rebel Energy Stopped Trading?

When an energy supplier like Rebel Energy goes out of business, Ofgem (the UK’s energy regulator) steps in to protect customers. In Rebel Energy’s case, Ofgem moved all customers to a new energy supplier through a process known as the Supplier of Last Resort (SoLR) scheme. Under this scheme:

• Customers were automatically transferred to a new provider, typically one of the larger, more stable energy companies in the market.
• Credit balances were transferred, so any credit remaining on customers’ accounts at the time Rebel Energy ceased trading was protected, and consumers would not lose any money.

Key Steps for Former Rebel Energy Customers:

If you were a customer of Rebel Energy, here’s what likely happened after the company went out of business:

1. Automatic Transfer:

   • Ofgem would have arranged for your account to be switched to a new energy supplier. This process is usually seamless, and you wouldn’t have to do anything. The new supplier would take over your energy supply and contact you to confirm the details.

2. New Supplier:

   • You were probably switched to one of the larger suppliers in the market. Ofgem usually ensures that customers are moved to a stable supplier, though this could mean higher rates temporarily while the market adjusts.

3. Check Your Energy Bills:

   • Even though you were moved to a new supplier, you should check your final bill from Rebel Energy to make sure there are no discrepancies. If you had a credit balance on your account, the new supplier should honor it, but it’s always worth keeping an eye on your bills.

4. Energy Price Cap:

   • If you were moved to a new supplier, your rates may have been impacted by the energy price cap, which limits how much suppliers can charge for energy. However, the energy crisis led to significant increases in rates, even with the cap in place.

5. Switching Options:

   • After being transferred to a new supplier, you were free to switch to another supplier if you were unhappy with the rates or service. You can use platforms like uSwitch or other price comparison sites to find a better deal that suits your needs.

What Caused Rebel Energy’s Collapse?

Rebel Energy, like many smaller energy suppliers, struggled with the volatility in wholesale energy prices. In particular:

• Rising Wholesale Energy Costs: The rapid rise in the cost of wholesale energy (gas and electricity) was a key factor. When the cost of energy rises, suppliers are forced to either absorb those costs or pass them on to consumers. Smaller suppliers with limited financial resources often struggle to absorb these costs, leading to financial insolvency.

• Government Price Cap: The energy price cap set by Ofgem limits how much suppliers can charge customers for energy. While this was designed to protect consumers, it meant that energy companies could not pass on the full increase in wholesale costs, causing many smaller suppliers to go under.

• Lack of Financial Reserves: Many smaller companies like Rebel Energy did not have sufficient financial reserves to weather prolonged periods of high wholesale energy costs. They lacked the buying power and financial buffers of larger suppliers.

What Are the Alternatives After Rebel Energy’s Collapse?

If you’re looking for alternative energy suppliers after Rebel Energy’s closure, there are plenty of options in the UK, including both traditional large suppliers and newer, more eco-conscious providers:

1. Larger Suppliers: These tend to be more stable and offer a range of energy plans, but they might not always be the cheapest or most customer-friendly. Examples include:

   • British Gas
   • E.ON Next
   • Scottish Power
   • EDF Energy

2. Green and Renewable Suppliers: If you want to continue supporting renewable energy, there are a number of smaller suppliers that specialize in green energy, such as:

   • Octopus Energy
   • Bulb (now part of Octopus)
   • Good Energy
   • SSE Energy (which is part of OVO Energy)

3. Comparison Tools: Websites like uSwitch, MoneySuperMarket, and Compare the Market can help you compare energy tariffs from different suppliers and find the best deal for your needs.

Conclusion

Rebel Energy’s collapse highlights the vulnerability of smaller energy suppliers in a volatile energy market. However, if you were a customer, Ofgem would have ensured that your energy supply continued without disruption, and you were moved to another supplier. Now, with many alternative suppliers available, you can easily shop around for a better deal or one that aligns with your preferences, especially if you’re keen on renewable energy.