Energy suppliers going bust: what to do

Soaring gas prices have led to many energy suppliers going bust over the past few years. But what does it mean for you if your energy supplier is suddenly no longer in business? Don't worry - there are plans in place to maintain your energy supply.

Which energy suppliers have gone bust?

These suppliers have gone bust since the start of the energy market crisis.

What happens if my energy supplier goes bust?

If your energy supplier goes bust, don't worry – your gas and electricity won’t suddenly be cut off.

You should take a meter reading and wait for Ofgem to transfer customers to a new supplier through the Supplier of Last Resort process. 

If you were on a fixed deal with your old supplier, it’s unlikely this is going to be carried through to the new supplier. Instead, you’re put onto its standard variable tariff. 

While you may end up with a supplier and/or tariff you don’t want, wait until the process has finished before trying to make any switches. 

What happens if my old account is in credit or debit?

As well as protecting your gas and electricity supply, Ofgem’s safety net also protects any credit balances you might have.

If your account’s in credit when the supplier fails, your new supplier should pay back anything you’re owed from your account, minus costs for the energy you’ve used during the switching process.

But with energy suppliers going bust, it’s not so clear what happens if there's a debit on your account. It depends on what your new supplier has agreed with the old supplier’s administrators.

If your new supplier has taken on customer debts from your old supplier, you need to repay the debt to your new supplier.

Otherwise, you may need to repay the debt to the old supplier or their administrator. Your new supplier is meant to explain how this works when they take over.

When will I know who my new energy supplier is and the date I'll be switched to it?

The Ofgem automatic switching process with energy suppliers going bust should only take a few days. When your new supplier contacts you, always ask to be put on their cheapest standard variable-rate tariff.

In some rare cases involving very large energy companies, the switching process can take longer as Ofgem might ask the courts to appoint an administrator to run your existing supplier. Your energy supply and any credit balance is still protected.

What happens if I have a smart meter?

If you have a smart meter, it will continue to log your energy usage as normal and in the majority of cases will automatically transfer to your new supplier. 

The UK’s smart data network now links to most smart meters, including the older SMETS1 models and newer SMETS2 meters. A small number of SMETS1 models still haven’t been migrated and may need your supplier’s help to reconnect.

That said, as a precaution it’s worth taking a photo of your meter readings the day before the transition happens as back up. If you notice your smart meter loses connection after the switch, call your new supplier so they can reconnect you.

What rate will I pay under my new contract with a new energy supplier?

You're put on a special ‘deemed’ contract with a new supplier. You find out the new rate when they take over, but it's likely to be on the new supplier's standard variable tariff (SVT). It's up to you how long the deemed contract lasts.

Ofgem claims it aims to get the best deal possible when it chooses a new supplier. But it also says that once the new supplier gets in touch, you should ask them to put you on their cheapest deal or run an energy comparison search to see what’s available

Can I switch energy suppliers after Ofgem has moved me?

Yes, you can switch energy suppliers once Ofgem has moved you and the new supplier has contacted you.

Ofgem says you won’t have to pay an exit fee if you decide to switch energy supplier after your new supplier contacts you.

What should I do if my energy supplier has gone bust the same time I'm moving home?

Find out who the supplier is for your new property and notify them that you’re the new occupier. You should be placed on its standard variable-rate tariff. You can also compare quotes to see if you can get a better deal elsewhere. There won’t be exit fees to pay if you decide to switch.

But if the supplier at the new address is also going bust, you should wait until Ofgem has appointed a new supplier there as well before you try to switch.

It’s a good idea to use a mail redirection service for your old address because the newly-appointed supplier should try to contact you. If you have credit on your account, they're meant to tell you how they’re going to refund the money.

As always with moving home, you should take meter readings at both the old and new property to make sure you only pay for the energy you use.

I've got a complaint - who do I go to?

Your new supplier isn't required to take on unresolved complaints from your old supplier, so this could be difficult.

But if you do have a complaint that’s unresolved, you can still discuss it with the new supplier to see if it can help.

If you feel the need to do so, you can take a complaint to the Energy Ombudsman. But you’re required to try and resolve the complaint with the supplier first and give them eight weeks to do so.

How do I save money on my energy bill?

Although energy prices have dropped slightly, they are still much higher than they were pre-energy crisis, and ongoing uncertainty fuels concerns of additional price rises. If you’re struggling with your energy bills and switching isn’t the right option for you, there are ways you can manage your energy usage and save.

Here are some ways to save money on your energy bill:

• Turn your thermostat down – according to the Energy Saving Trust, lowering your thermostat by a degree could save around 10% on your energy bill.
• Turn down the valve on radiators – you might be wasting money by having some of your radiators on too high.
• Turn off switches – switching off appliances at the plug could save you around £45 per year.

You could also take measures to boost your home's energy efficiency, such as:

• Using LED bulbs
• Insulating your loft
• Installing double glazing
• Using a smart meter
• Converting to solar energy using solar panels