Thousands of customers affected: German electricity provider files for bankruptcy

Another German electricity provider is broke. After “Otima Energie AG” filed for bankruptcy in the past few weeks, the next company is now joining. As the “Wirtschaftswoche” reports, Neckermann Strom AG has also reached the preliminary end. Neckermann Strom AG primarily supplies customers in Germany with green electricity and gas. The focus here is on offers for electric heating systems or charging stations.

According to current information, around 13,000 customers in Germany are said to be affected by the provider’s insolvency. Neckermann Strom also fails – like some competitors before – because of the ever increasing costs for purchasing electricity and gas. However, since the companies have existing contracts with their customers that will continue for some time, you cannot pass the costs on to the consumer.

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Electricity provider Neckermann Strom insolvent: What customers need to know

First of all, Neckermann Strom customers should receive a notification that the provider has filed for bankruptcy. At first there is no reason to panic. Because you won’t suddenly find yourself without electricity. In such cases, a local supplier – usually the municipality in which you live – takes care of the supply for about three months. During this time you can look around for new providers and make comparisons.

However, once you have been notified of the bankruptcy, there are still a few things you need to do. You should set all SEPA payments and standing orders to the electricity provider. Usually, either the local consumer or the liquidator will send you new bank details. You will continue to pay to this over the next few months.

You should also send a written notice of termination to your previous provider. If there are still outstanding repayments or credit balances, you must register these as soon as possible after the opening of the insolvency proceedings.