What happens if my energy supplier goes bust?

If your energy supplier goes bust, it can be a stressful time. You may have all sorts of questions and concerns - what happens to your credit balance? Will you be cut off? Who is the supplier of last resort? Read our guide for the answers to all of these things, but most importantly - don't worry.

Jump to different sections!

^{What is Supplier of Last Resort?}

^{What do I need to do when my supplier goes bust?}

^{Will my power be cut off?}

^{Will I be put on a new energy tariff?}

^{Will my energy bills go up?}

^{Should I cancel my Direct Debit?}

^{Will my credit move with me?}

^{What happens if I have debt?}

^{What happens if I'm on an SVT tariff and my energy company's gone bust?}

^{What happens if I'm on a fixed tariff and my energy company's gone bust?}

^{What happens if I have a Smart Export Guarantee (SEG) tariff and my energy supplier goes bust?}

^{What happens if my energy company goes bust and I'm a pre-payment customer?}

^{List of energy suppliers that have gone bust}

^{How to switch to EDF if your energy company has gone bust}

^{How can I save money and lower my bills?}

What happens when an energy company goes bust? 

The most important thing to know, is your energy supplier won't be cut off. Ofgem (the government's energy industry regulator) will appoint a new energy supplier to take over from your energy company that went bust. 

You'll still get your gas and electricity supplied to your home as normal, and your new supplier will be in touch with as soon as possible, giving you all the information you'll need. For example, the tariff they'll have put you on, your account details and how they'll deal with any existing credit or debt you may have with your previous supplier.

If you find out your energy company has gone bust, it's best not to switch immediately to another company. Wait for the new supplier Ofgem has sorted to take care of your account to get in touch, before you take any action, as your credit balance is protected. 

What is Supplier of Last Resort?

To protect consumers, Ofgem put a safety net in place to keep your supply secure - the Supplier of Last Resort process. You’ll get your energy as normal, but you’ll be moved to another supplier chosen by Ofgem. Your new supplier will write to you to introduce themselves and inform you about your new tariff. Plus, any credit on your account will be protected, so don’t worry about losing your money.

What do I need to do when my supplier goes bust?

First make sure to take a meter reading. It’ll help with your final bill for your old supplier, and means you’ll start your new account with the correct readings. It's also a good idea to download your bills and check your balance to see if you’re in credit.

Apart from that, you don’t need to do anything. Your new supplier will contact you once you’ve been moved to tell you about your new contract.

Will my power be cut off?

No, your power won't be cut off. Ofgem moves you to a new supplier, and they immediately start providing your energy. This happens automatically - you don't need to contact anyone, and there won't be any interruption in your supply.

Will I be put on a new energy tariff?

Your old tariff will probably end, and you’ll be set up on a new one. Your new supplier will send you all the details, including how much you’re paying and when the contract ends. They’re not allowed to charge you an exit fee if you decide to switch, so it’s worth shopping around.

Will my energy bills go up?

Unfortunately, it’s likely your bills will go up, especially if your old supplier was selling energy too cheaply. You can contact your new supplier and ask to be put on their cheapest tariff. Or you can shop around to see if you can find something cheaper elsewhere. You won’t be charged an exit fee if you decide to go with a different supplier to the one Ofgem has chosen for you.

Should I cancel my Direct Debit?

Ofgem's advice is that you don't need to cancel your Direct Debit. If you do, you could risk building up debt.

If you’re in credit, your money is protected, and your new supplier may not take any payments for a while. If you’re in debt and owe money, then your Direct Debit payments will be taken as normal.
 

Will my credit move with me?

Any credit you’ve built up is protected and will either be transferred to your new account or be paid back to you. Your new supplier will let you know how they will do it.

What happens if I have debt?

That depends on what your new supplier agrees with your old supplier.
If your new supplier agrees to take on customer debt, you’ll pay them as your debt will be transferred over. If that’s not what they agree to, then you may need to pay back your old supplier. Don’t worry – this is exactly the sort of thing your new supplier will tell you.

What happens if I'm on an SVT tariff and my energy company's gone bust?

1. If your energy company goes bust while you're on a Standard Variable tariff (SVT), your energy supply won't be interrupted or cut off due to Ofgem's Supplier of Last Resort. They'll find a new energy company to take over your account, and any credit you may have on your current energy account is protected.
2. The new supplier will get in touch and you'll be moved from your old Standard Variable tariff onto a "deemed" tariff.  This is a temporary contract with the new supplier. They're normally a Standard Variable tariff, so you might not see a price difference with your energy rate as they're covered by Ofgem's energy price cap. But, it's important to check as they might be more expensive than what you were previously paying.  
3. Once your account is set up with the new supplier, you can switch to a cheaper tariff or a different supplier without paying any exit fees. The new supplier should let you know about their cheapest available tariff options. 

What happens if I'm on a fixed tariff and my energy company's gone bust?

1. If your energy company goes bust while you're on a fixed tariff, your tariff will end but your energy supply won't be interrupted or cut off.
2. Once Ofgem have found you a new energy supplier you'll be moved on to a deemed tariff - which will most likely be a Standard Variable tariff. Once you're fully set up it's worth checking if you can pay less with a different tariff such as a fixed tariff again, as deemed tariffs can be more expensive.  You can also switch to a new supplier and tariff without paying any exit fees.
3. If your account was in credit with your previous supplier, you credit will be returned to you as it's protected. 

What happens if I have a Smart Export Guarantee (SEG) tariff and my energy supplier goes bust?

If you have a SEG tariff, you're responsible for finding a new SEG tariff for exported electricity, as one won't be appointed on your behalf. Ofgem give a list of current licensees: SEG Licensees.

To make sure you keep getting your SEG payments it's important you find a new SEG tariff as soon as you can. A new SEG Licensee can only make payments for exported electricity once you have a new SEG contract.

What happens if my energy company goes bust and I'm a pre-payment customer?

• Make sure to take meter readings or take a photo of your current readings
• Your gas and electricity won't be cut off or interrupted
• Any credit you have on your account is protected - it'll be transferred to the new supplier Ofgem find for you
• Once you're set up with the new supplier you're free to switch to a new supplier or find a different tariff option which may be better priced than the deemed tariff you'll be automatically placed on to

List of energy suppliers that have gone bust

How to switch to EDF if your energy company has gone bust

If you've just found out your energy company has gone bust, make sure to take your meter reading and the advice explained above, then wait until a new energy company has been appointed to you by Supplier of Last Resort. Once you've been moved over to the new company, see how you feel about them. If you decide you'd rather switch to join us, that's great! 

To switch to EDF get a quick energy quote, choose your tariff, and buy online! We'll sort a switch date with your current energy supplier, so you don't need to worry or do anything and will get in touch for your electricity and gas meter reading. Once you've successfully switched over, we'll let you know.

How can I save money and lower my bills?

In the current cost of living and energy crisis, it's difficult to switch to a better tariff as there aren't many around. Traditionally, a fixed energy tariff would be slightly cheaper, and your prices would be protected for the duration of your contract. However, at the moment, there aren't many of those around. If you're on a standard variable tariff, keep your eye on the energy market to see when better tariffs are available. 

Other ways to save on your energy bills

• Check if you're on the best tariff for your home; compare our fixed and tracker tariffs against Ofgem's price cap and our Standard variable tariff
• Want to understand Ofgem's price cap a little better? View our price cap predictions
• Earn up to 16 hours of free electricity to use on Sundays if you join our Sunday Saver challenges!
• See if you’re eligible for the Warm Home Discount scheme, or sign up to our Priority Services Register
• Read our blog on how to reduce your energy use and carbon emissions

Any other questions?

If you want to know more or have any other questions, you can visit the official Ofgem site.

If you'd like to see if you could get a better energy deal with us, view our current gas and electricity tariffs and get an energy quote today.