My energy supplier has gone bust – now what

It’s been a rough few years for electricity and gas customers, eh?

Since 2018, dozens of energy firms in the UK have gone under; and while the market appears to be stabilizing and prices look set to fall here in 2024, the past few years have certainly taught us that anything could happen next.

Worried about what will happen if your supplier goes bust? Here’s a quick guide to assuage your fears…

Keep calm!

We get it; the uncertainty surrounding your energy supplier’s collapse can be scary and overwhelming.

But relax; you won’t lose access to your electricity or gas even if your supplier goes under.

That’s because Ofgem – the government regulatory body for electricity and gas – will protect your supply and any outstanding credit. You’re free to continue using your electricity and gas as normal.

This is the case whether you’re a domestic energy user or you have a business account with your supplier.

Don’t contact other suppliers yet

Ofgem will then work to transfer all your old supplier’s customers to another energy supplier.

This supplier will be carefully chosen to ensure they can keep up with the increased demand, so you shouldn’t need to worry about going through the same scenario again.

Will your energy bills go up?

While you’ll never pay more than the nationwide Energy Price Cap, your new supplier’s bills might be more expensive than the amount you were paying previously.

What can you do about higher bills? We’ll come back to this later; but for now, just stay put and wait for your new supplier to get in touch.

Don’t reach out to other suppliers or cancel your direct debit just yet, as this will likely cause further confusion and delays.

Wait for the new energy supplier to contact you

Ofgem should announce your new supplier within a few days of your old supplier’s demise. Keep an eye on the Ofgem website for the latest announcements.

After that, the new supplier should be in touch with you to confirm the details of your new contract with them. If you don’t hear anything within two weeks, try chasing them up.

Be vigilant to energy scams at this stage. Scammers pretending to be from a new supplier (or possibly Ofgem or your old supplier) might contact you in an attempt to steal your money or personal info.

If you have any doubts about the deal they’re offering, the way they want you to pay, or any other suspicions, go to the supplier or Ofgem’s official website and contact them directly to check. Don’t reply or follow any links in the suspicious message!

If a replacement supplier can’t be found – usually due to the size/complexity of the original supplier – the old supplier may be placed under a ‘special administration regime’ or ‘SAR’.

(At the time of writing, Bulb – whose collapsed in 2021 put around 1.7 million customers’ energy supplies at risk – has been the only energy firm to ever have been appointed special administrators.)

In this case, the administration of the old supplier will contact you to discuss what will happen next. They’ll work to either refloat the business or sell it, and to transfer customers to other suppliers if necessary.