Another German electricity provider has broken up. After “Otima Energy AG” filed for bankruptcy, the next company is joining now. Like “Economic Week” Reported, Neckermann Strom AG has also reached the end. Neckermann Strom AG supplies green electricity and gas to customers primarily in Germany. The focus here is on proposals for electric heating systems or charging stations.

As of current information, there are about 13,000 customers in Germany reported to be affected by the provider’s bankruptcy. Neckermann Strom fails – like some of its earlier competitors – due to the ever-increasing cost of purchasing electricity and gas. However, since companies have existing contracts with their customers that will continue for some time, you cannot pass on the cost to the consumer.

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Electricity provider Neckermann Strom bankrupt: what customers need to know

First, Neckermann Strom customers should receive a notification that the provider has filed for bankruptcy. First of all there is no reason to panic. Because you won’t suddenly find yourself without electricity. In such cases, a local supplier — usually the municipality you live in — takes care of the supplies for about three months. In the meantime you can search for and compare new providers.

However, once you receive a bankruptcy notice, you still need to do a few things. You should schedule all SEPA payments and standing orders to the electricity provider. Typically, the local consumer or liquidator will send you new bank details. You will continue to pay for it over the next few months.

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