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What do I do if my energy company goes bust?

By Marta Moses | Posted September 28, 2021

It's a stressful time when your energy supplier goes bust. You'll 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.

As a result of the huge increase in wholesale energy prices (the price energy companies pay for the energy they then sell to households), many energy suppliers have been unable to keep afloat. But why?

Some energy companies have been attracting customers with rock bottom prices, but pricing low and hoping wholesale costs stay the same is a gamble...

Energy companies buy their energy in advance – it’s called hedging. Buying energy in bulk in advance helps reduce risk; wholesale prices may go up and down, but if a company has already bought enough energy, they can weather the storm and walk the line between turning a profit and staying competitive.

It’s a bit like doing a big, weekly shop; you can plan ahead based on what you need, buy enough for the week and, crucially, set a budget. The other option is buying everything at the corner shop as and when you need it. It's more expensive, and you could turn up one morning to find that everything costs twice as much - or it's all gone!

Some companies didn’t buy enough energy in advance, and now they’re facing record prices to buy what they need to supply their customers. Plus, those customers agreed to pay a specific price, which is probably a lot less than what their supplier has to pay now. Selling at a loss means losing money, and that’s how companies end up going bust.

What happens when an energy company goes bust? The Supplier of Last Resort 

First things first – your energy won’t get cut off.

Energy companies go out of business more often than you’d think, so Ofgem put a safety net in place to keep your supply secure - the Supplier of Last Resort process (SoLR).

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?

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. You can also 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 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 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, 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.

Has EDF gone bust?

No, EDF has not gone bust and is not going bust. We're acting as the supplier of last resort for some customers whose energy company has gone bust, with their accounts being transferred over to us.

List of energy suppliers that have gone bust

As of July 2023, the suppliers in the table below have all stopped trading. Their customers have been transferred over to a new supplier, known as the supplier of last resort. 

Old Energy Supplier

New Supplier

When the old Supplier Closed

Whoop Energy

Yu Energy

18 February 2022

Xcel Power Ltd

Yu Energy

18 February 2022

Together Energy (inc Bristol Energy)

British Gas

18 January 2022

Zog Energy

EDF Energy

01 December 2021

Orbit Energy

Scottish Power

25 November 2021

Entice Energy

Scottish Power

25 November 2021

Bulb Energy

Special Administration Process

22 November 2021

Social Energy Supply

British Gas

16 November 2021

Neon Reef

British Gas

16 November 2021

CNG Energy

Pozitive Energy

04 November 2021

Zebra Power

British Gas

02 November 2021

Omni Energy Ltd

Utilita

02 November 2021

Ampoweruk Ltd

Yu Energy

02 November 2021

MA Energy

SmartestEnergy

02 November 2021

Bluegreen Energy

British Gas

02 November 2021

GOTO Energy

Shell Energy

18 October 2021

Daligas

Shell Energy

14 October 2021

Pure Planet

Shell Energy

13 October 2021

Colorado Energy

Shell Energy

13 October 2021

Igloo Energy

E.ON

29 September 2021

Symbio Energy

E.ON

29 September 2021

ENSTROGA

E.ON

29 September 2021

Avro Energy

Octopus Energy

22 September 2021

Green

Shell Energy

22 September 2021

Utility Point

EDF Energy

14 September 2021

People's Energy

British Gas

14 September 2021

PFP Energy

British Gas

07 September 2021

Money Plus Energy Ltd

British Gas

07 September 2021

Hub Energy

E.ON

09 August 2021

Green Network Energy

EDF Energy

27 January 2021

Simplicity Energy

British Gas

27 January 2021

Yorkshire Energy

Scottish Power

02 December 2020

Tonik Energy

Scottish Power

06 October 2020

Go Effortless Energy

Octopus Energy

03 September 2020

GnERGY

Bulb Energy

18 March 2020

Breeze Energy

British Gas

18 December 2019

Toto Energy

EDF Energy

18 December 2019

Uttily Energy

Total Gas and Power

15 October 2019

Eversmart Energy

Utilita

06 September 2019

Solarplicity

SSE

13 August 2019

Cardiff Energy Supply

SSE

09 August 2019

Brilliant Energy

SSE

11 March 2019

Our Power

Utilita

25 January 2019

Economy Energy

Ovo Energy

08 January 2019

One Select

Together Energy

10 December 2018

Spark Energy

Ovo Energy

10 December 2018

Extra Energy

Scottish Power

21 November 2018

Usio Energy

First Utility

15 October 2018

Gen4U

Octopus Energy

13 September 2018

Iresa

Octopus Energy

13 September 2018

National Gas and Power Limited

Hudson Energy

25 July 2018

Future Energy

Green Star Energy

13 September 2018


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 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

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 tariffs.  View our current tariffs