Experiencing the collapse of your energy supplier can be a concerning and uncertain time. However, it’s important to remember that there are measures in place to protect consumers and ensure a smooth transition to a new supplier. In this article, we will guide you through the steps to take if your energy supplier goes bust, helping you safeguard your energy supply and manage the situation effectively.
Wait for Contact from Your New Supplier
Once your old supplier goes bust, Ofgem will appoint a new supplier to take over your energy provision, this is called the ‘Supplier of last resort or SOLR’.
The new supplier will contact you directly to provide information about the transfer process and the services they will offer. It is crucial to wait for this contact before taking any further action
During this waiting period, it’s essential to keep an eye on your energy usage and keep track of meter readings. This information will be useful when communicating with your new supplier and ensuring accurate billing.
Maintain Your Direct Debit
While awaiting contact from your new supplier, it is advisable to maintain your direct debit with your old supplier. This helps ensure a smooth transition and avoids any potential delays in the transfer process.
Your new supplier will establish a new direct debit arrangement once they get in touch with you.
By maintaining your direct debit, you can continue to pay for your energy usage and avoid falling into arrears. If you have any concerns about your direct debit, such as overpayment or incorrect billing, make a note of it to discuss with your new supplier when they contact you.
Review Your Energy Bill and Credit Balance
Take the opportunity to review your energy bill and assess any credit balance or outstanding payments with your old supplier. If you have a credit balance, your new supplier will honor it and apply it towards future bills. In case you owe money to your old supplier, the new supplier may incorporate it into your future payment plans or discuss repayment arrangements with you.
To ensure accuracy, compare your latest bill with your meter readings. If there are discrepancies or concerns about the accuracy of your billing, make a note of them to discuss with your new supplier. Transparency and clear communication are crucial during this transition.
Understand Your Rights and Protections
Ofgem has implemented regulations to safeguard consumers during supplier insolvencies. These protections ensure that you are always supplied with energy, even if your supplier goes out of business. You have the right to a seamless transfer to a new supplier, and your energy supply should not be disrupted during this process.
As a customer, you have the right to fair treatment, clear communication, and accurate billing from your new supplier. Familiarize yourself with Ofgem’s guidelines and codes of practice to understand your rights and protections. Ofgem also provides information on what to expect during the transfer process, including details about your rights to complaint resolution and dispute resolution.
Communicate with Your New Supplier
Once you receive contact from your new supplier, maintain open communication with them. Provide any necessary information they require and raise any concerns or queries you may have. Your new supplier will guide you through the transition, address your concerns, and provide ongoing support.
Take note of the contact details provided by your new supplier and make a record of important conversations or correspondence. If you have any specific preferences or requirements regarding your energy supply, such as green energy options or specific payment methods, communicate those to your new supplier. They will strive to accommodate your needs as much as possible.
During your communication with the new supplier, it’s also a good opportunity to inquire about any changes in tariff rates or contract terms. They will be able to provide you with information on their pricing structure and any available options for switching to a different tariff that suits your needs.
Avoid Switching to Another Supplier Independently
It is crucial to resist the urge to switch to a different supplier independently while waiting for contact from the appointed “supplier of last resort.” The transfer process to the new supplier will be handled by Ofgem, ensuring a smooth transition. Switching to another supplier could complicate matters and lead to unnecessary challenges.
By allowing Ofgem to manage the transition, you can ensure a seamless transfer without disruption to your energy supply. The appointed supplier of last resort will take over your account, and they are obligated to honor the terms and conditions of your previous contract, including pricing and service levels.
Seek Support for Financial Difficulties
If you encounter financial difficulties and struggle to pay your energy bills, contact your new supplier as soon as possible. They can provide guidance on payment options, assistance programs, or discuss flexible arrangements to help you manage your payments during this challenging period.
Energy suppliers are aware of the financial strain customers may face during a supplier collapse. They may offer payment plans, energy-saving advice, or access to grants and schemes to help alleviate the burden. Be proactive in reaching out to your new supplier if you require support, as they are there to assist you
Which energy suppliers have gone bust so far?
Several UK energy suppliers have faced financial difficulties or gone out of business in recent years. It’s important to note that the energy market is dynamic, and the situation may have changed since then.
Taken from Ofgems website, here are a few examples of energy suppliers that have faced insolvency or ceased trading:
|
9 July |
UK Energy Incubator Hub (UKEIH) |
• 3000 domestic |
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18 February 2022 |
Whoop Energy |
• 50 domestic •212 non-domestic |
|
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18 February 2022 |
Xcel Power Ltd |
• 274 non-domestic |
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18 January 2022 |
Together Energy Retail Ltd |
• 176,000 domestic •1 non-domestic |
British Gas from 24 January 2022 |
|
1 December 2021 |
Zog Energy Limited |
• 11,700 domestic |
EDF from 4 December 2021 |
|
25 November 2021 |
Orbit Energy Limited |
• 65,000 domestic |
Scottish Power from 1 December 2021 |
|
25 November 2021 |
Entice Energy |
• 5,400 domestic |
Scottish Power from 28 November 2021 |
|
16 November 2021 |
Neon Reef Limited |
• 30,000 domestic |
British Gas from 21 November 2021 |
|
16 November 2021 |
Social Energy Supply Ltd |
• 5,500 domestic |
British Gas from 21 November 2021 |
|
3 November 2021 |
CNG Energy Limited |
• 41,000 non-domestic |
Pozitive Energy from 7 November 2021 |
|
2 November 2021 |
Omni Energy Limited |
• c 6,000 •domestic |
Utilita from 7 November 2021 |
|
2 November 2021 |
MA Energy Limited |
• c 300 non-domestic |
SmartestEnergy from 7 November 2021 |
|
2 November 2021 |
Zebra Power Limited |
• c 14,800 domestic |
British Gas from 7 November 2021 |
|
2 November 2021 |
Ampoweruk Ltd |
• c 600 domestic •c 2,000 non-domestic |
Yü Energy from 7 November 2021 |
|
1 November 2021 |
Bluegreen Energy Services Limited |
• c 5,900 domestic •non-domestic |
British Gas from 7 November 2021 |
|
18 October |
GOTO Energy |
• c22,000 domestic |
Shell Energy from 21 October 2021 |
|
14 October |
Daligas |
• c9,000 domestic and non-domestic |
Shell Energy from 17 October 2021 |
|
13 October |
Pure Planet |
• c235,000 domestic |
Shell Energy from 17 October 2021 |
|
13 October |
Colorado Energy |
• C15,000 domestic |
Shell Energy from 17 October 2021 |
|
29 September |
ENSTROGA |
• c6,000 domestic |
E.ON Next from 3 October 2021 |
|
29 September |
Igloo Energy |
• c179,000 domestic |
E.ON Next from 3 October 2021 |
|
29 September |
Symbio Energy |
• c48,000 domestic •non-domestic |
E.ON Next from 3 October 2021 |
|
22 September |
Avro Energy |
• c580,000 domestic |
Octopus Energy from 26 September 2021 |
|
22 September |
Green Supplier Limited (‘Green.’) |
• c255,000 domestic •non-domestic |
Shell Energy from 27 September 2021 |
|
14 September |
People’s Energy |
• c350,000 domestic •c1,000 non-domestic |
British Gas from 19 September 2021 |
|
14 September |
Utility Point |
• c220,000 domestic |
EDF from 18 September 2021 |
|
7 September |
PFP Energy |
• 82,000 domestic •5,600 non-domestic |
British Gas from 11 September 2021 |
|
7 September |
MoneyPlus Energy |
• c9,000 domestic |
British Gas from 11 September 2021 |
|
9 August |
Hub Energy |
• c6,000 domestic •c9,000 non-domestic |
E.ON Next from 13 August 2021 |
|
27 January |
Green Network Energy |
• c360,000 domestic •non-domestic |
EDF from Sunday 31 January 2021 |
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