Don’t panic. If your energy supplier goes bust you won’t lose your energy supply – there’s a process in place to help you.
First steps: take a meter reading as soon as you can – to show how much gas and electricity you used with your old supplier. Keep hold of it as it will be useful.
Will my power be cut off?
No, your supply won't be cut off. Ofgem simply moves you to a new supplier. This supplier is called ‘the supplier of last resort’.
What happens to my tariff?
Your old tariff will most likely end and you’ll be set up on a new contract. However, in 2018 some companies honoured the prices customers were previously paying – so it’s essential to double check this when you move over.
Will my energy bills go up?
Well, usually the new contract you’re put on tends to mean bills do go up. However, get in contact with your new supplier and you can ask to be put on their cheapest tariff. Alternatively, you can shop around and change suppliers to a new cheaper tariff. You won’t be charged exit fees 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 customers don't need to cancel their direct debit.
If you are in credit the energy supplier shouldn’t take payments.
However, if you are in debt and owe money to the energy supplier then any direct debit payments will be taken as normal.
Your new supplier will contact you and you can set up your new account and arrange your new direct debits.
Will my credit move with me?
Your new supplier will pay back any outstanding credit.
Once Ofgem has chosen the new supplier, it will contact you to explain how it all works.
What happens if I have debt?
It really depends on what your new supplier agrees with your old supplier.
If your new supplier has agreed to take on all customer debt, you will need to pay back the debt to your new supplier.
If this has not been arranged, you won't have to pay your new supplier any money you owed.
However, you may still have to pay it back to your old supplier – your new supplier will explain to you how any repayments will work.
Any other questions?
If you have any other questions you can visit the official Ofgem site. And remember if you're not happy with your energy provider – you can always switch.