Ofgem had to step in to find a new gas and electricity supplier for the customers after the company collapsed last week.
Iresa was previously banned by the regulator from taking on new customers after it failed to resolve its customer service problems – it was also branded the “worst energy company” by Citizens Advice amid record level of complaints.
Ofgem says Octopus Energy, which supplies around 250,000 customers, has a good customer service record, with a 3.8 out of 5 rating in Citizens Advice league table and is the only energy provider recommended by Which?.
The energy supplier is offering Iresa’s customers its Flexible Octopus tariff, which the regulator adds is “one of the most competitive tariffs on the market and the best value deal on offer for them”.
Octopus Energy will honour all outstanding credit balances, including money owed to both current and past customers of Iresa – any credit on current customer accounts can be used to offset future energy use.
Iresa’s customers will be contacted by their new supplier by 14th August and the switch will be completed within a week. At that point, customers wishing to change their tariffs can do so and they won’t be charged exit fees.
Greg Jackson, CEO of Octopus Energy said: “Iresa’s records are in a terrible mess so it will take us a bit of time to untangle them. Customers should take a meter reading as soon as possible and wait to hear from us once we’ve transferred them to our systems.”