What to do if your energy supplier goes bust

The recent increase in wholesale global gas prices is impacting many countries including the UK. The effect of these price rises means that we are seeing more suppliers than usual exiting the energy market.

With a number of smaller suppliers already ceasing trading, you may very well be affected by the market changes.

If your energy suppliers is one of the companies that goes bust, your supply, and any credit you have with your supplier remains safe.

Ofgem - who oversee the energy market in the UK - have a range of powers to ensure that you are protected.

Initially, your current supplier may arrange to transfer their customers to another supplier via a trade sale.  However, in most cases, Ofgem will step in to move you to another supplier without you having to do anything.  They will also protect any household credit balances, so any money you are owed is either returned, or transferred to your new supplier.

You will be contacted in the first instance by your new supplier, who will explain what happens next.  It's a good idea at this stage to take a meter reading, so your new supplier can start afresh with an accurate bill.

It will take a week or so for your new supplier to transfer your details over to their own systems.  In this time, your supply will not be affected in any way, and you can continue to use power as you did before.

Your current contract with your energy supplier will end.  This means any fixed deals, or quoted prices will no longer be valid.  You will be moved onto a new contract with your new power supplier - this could cost more than your old tariff, so your bills could go up. However, they are covered by the energy price cap Ofgem sets, which ensures you get a fair price if you are put on one.

Once you are moved to your new supplier, you are free to search the market for a better deal.  There are no exit fees to be paid.

Ofgem suggest three tasks to do if your energy supplier fails

Take a meter reading, sit tight and don't switch
Cancel your direct debit if you want to. You will continue to move to your chosen supplier if you already have a switch in progress.

Wait for Ofgem to appoint a new supplier
You don’t need to do anything. Your supply won’t be disrupted and it should only take us a few days. Ofgem’s safety net will protect your supply and any credit balance.

When the new supplier contacts you
Ask to be put on their cheapest tariff or shop around and switch if you want to. You won’t be charged exit fees. They’ll also explain how they will manage your account balance, including any credit refunds.

For further information, Ofgem have produced a page of advice here.

What has your experience been of your energy supplier going bust?  Email us on news@oldham-chronicle.co.uk, or contact us on Facebook.

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