What happens if your energy supplier goes bust

No.

We’ll move you to a new supplier. Your energy supply won’t be disrupted. In fact, you won’t notice any change, other than a new supplier being appointed for you. 

Our advice is to take a meter reading. Don’t do anything until we have appointed a new supplier and they have been in touch with you.

Ofgem will choose your new supplier, following a competitive process designed to get the best deal for you.  

In exceptional circumstances, Ofgem and government may appoint an administrator to run your supplier if it gets into financial difficulty. This is known as a Special Administration Regime (SAR). 

The administrator will ensure that your supplier continues to operate. It will look at ways to rescue the supplier and it may look at ways to transfer customers to another supplier. The important thing to remember is that your energy supply will not be disrupted and any credit balance you have will be protected. 

If an administrator takes over your supplier 

1. You don’t need to do anything – you will continue to receive energy from your supplier and any credit balance you have will remain protected. Your supplier will contact you to let you know what is happening. 

2. Do not cancel your direct debit – you will continue to receive energy and be billed for it. 

3. You do not have to stay with your supplier if you do not wish to - you are free to shop around and switch to another deal. 

4. At a future date, the administrator may close down your supplier and move you to another supplier. If this happens they will let you know exactly what is happening in advance.  

Again, your supply would not be disrupted and any credit balance you have would be protected - and after being moved to your new supplier you would be free to shop around and switch if you wished.  

We’ll make a decision on a new supplier as soon as possible. We’ll announce these details on our website and social media. The new supplier will also contact you shortly after being appointed by us.

We’ll ask suppliers to bid to take on customers. That way we can try and get the best possible deal for you in the circumstances.

After we’ve chosen them, you will be moved onto a new contract. It should only take us a few days to appoint a new supplier.

Our advice is to sit tight, don’t switch and wait until the new supplier contacts you during this time. This will make sure the process is as hassle-free as possible, including returning any credit balance you may have.

Once the new supplier contacts you, ask them to put you on their cheapest tariff or shop around and switch if you want to. You won’t be charged exit fees.

You’ll be transferred to a new supplier when we appoint them. Your energy supply won’t be disrupted.

We will try to find a supplier that can give you the best deal in the circumstances. If the new supplier we choose can’t operate your smart meter in smart mode - it will continue to work, but as a ‘traditional’ meter. This means you may need to take meter readings and submit these to your new supplier, or they will arrange for a meter reading to be taken.

That means the new supplier will operate it as a traditional meter. They’ll take meter readings manually. 

It’s likely your meter can work in smart mode again in the future. For example, if you choose to shop around for another tariff or supplier, or when all meters are enrolled on the national smart meter communication service. 

You should still be able to top up your meter as you would normally while we appoint a new supplier for you. You shouldn’t lose supply.  

If you are having problems topping up or your card or token won’t work, you can contact Citizens Advice, or Advice Direct Scotland if you are in Scotland. 

For Citizens Advice: 

• Call 0808 223 1133 or use their online webchat. 

• For textphone, dial 18001 followed by the helpline number. 
   

For Advice Direct Scotland: 

• Call 0808 800 9060, use their online webchat or contact them by e-mail. 

• British Sign Language information. 

If you are having problems, you can contact Citizens Advice or Advice Direct Scotland, if you are in Scotland. 

For Citizens Advice: 

• Call 0808 223 1133 or use their online webchat. 
• For textphone, dial 18001 followed by the helpline number. 

For Advice Direct Scotland: 

• Call 0808 800 9060, use their online webchat or contact them by e-mail. 
• British Sign Language information. 

If you are having problems topping up or your card or token won’t work while we are appointing a new supplier, you can contact Citizens Advice, or Advice Direct Scotland if you are in Scotland. 

For Citizens Advice: 

• Call 0808 223 1133 or use their online webchat. 
• For textphone, dial 18001 followed by the helpline number. 

For Advice Direct Scotland: 

• Call 0808 800 9060, use their online webchat or contact them by e-mail. 
• British Sign Language information. 

Once we have appointed a new supplier, they will be able to advise and help with new and replacement key cards and tokens.

If you have exhausted your emergency credit and can’t top up, please contact Citizens Advice or Advice Direct Scotland. 

If you are in England or Wales, Citizens Advice can help: 

• Call 0808 223 1133 or use their online webchat. 
• For textphone, dial 18001 followed by the helpline number. 

If you are in Scotland, contact Advice Direct Scotland:  

• Call 0808 800 9060, use their online webchat or contact them by e-mail. 
• British Sign Language information. 

You can also find further information about government and charity schemes, grants and benefits in our help with energy bills guide. 

Your supplier or their appointed administrator will contact you at your old home address. You may want to consider redirecting your post if this affects you. 

Take a meter reading for your old and new property for your records. The new supplier we appoint will explain how to settle any account balances, including how they will return any money you may have owed if your account is in credit.

If you aren't sure who the supplier is at your new property, see our Finding your gas or electricity supplier guide. Once you know who the supplier is for your new property, contact them and ask to be put on their cheapest tariff or shop around and switch if you want to. You won’t be charged exit fees. If it's a supplier that has exited the market, wait for the new supplier we appoint to take on your supply to contact you.

This is a challenging time in the energy market and we know that there may not be many tariffs available when shopping around right now.

When a company stops trading, they may take their website services offline. Our advice is to take a meter reading and sit tight until the new supplier contacts you. Your account records held by your old supplier will be passed onto the new supplier.  

The new supplier we appoint will confirm any credit or debt balance you have based on these records. They will then explain what will happen next, including how you will get back or pay back an account balance.

If you cannot take a meter reading because your meter's not working, please contact Citizens Advice (England and Wales) or Advice Direct Scotland.  

If it’s difficult for you to take a meter reading yourself, try and ask someone else you trust such as a neighbour, family member or friend to read the meter for you if you can. 

For Citizens Advice: 

• Call 0808 223 1133 or use their online webchat. 
• For textphone, dial 18001 followed by the helpline number. 

For Advice Direct Scotland: 

• Call 0808 800 9060, use their online webchat or contact them by e-mail. 
• British Sign Language information. 

Yes.

Your old tariff will end.

Instead, your new supplier will put you on a special ‘deemed’ contract. This means a contract you haven’t chosen. This contract will last for as long as you want it to. 

Your new supplier will start you off on a special ‘deemed’ contract. This means a contract you haven’t chosen.

Deemed contracts can be more expensive because the supplier takes on more risk (eg they might to buy extra wholesale energy at short notice), so your bills could go up. But Ofgem will try to get the best possible deal for you if you’re in this situation. You’re not locked into the deemed contract – you can change tariff or supplier at any time. Deemed contracts are also protected by the Energy Price Cap.

Sit tight and wait to be contacted to protect any credit balance you may have. When contacted, ask to be put on the cheapest tariff or shop around and switch if you want to. You won’t be charged exit fees.

Your new supplier will put you on a special ‘deemed’ contract. This means a contract you haven’t chosen. It can last for as long as you want it to.

Your new supplier will tell you what the new deemed rate will be, and it will take effect when they take over your supply. Deemed contracts are also protected by the Energy Price Cap. It will take effect when they take over your supply. We aim to make a decision on the new supplier as soon as possible. When choosing a new supplier, we try to get the best possible deal for you.  

Once your new supplier has been in touch, ask them to put you on their cheapest deal. Then shop around and switch if you want to. You won’t be charged exit fees. 

No.

Our advice is not to switch but wait until the new supplier contacts you. They can then tell you what to do about any money you have in credit on your account with your old supplier.

Ask the new supplier to put you on their cheapest tariff or shop around and switch if you want to. You won’t be charged exit fees.

You don’t need to worry. If it’s already in progress, you will continue to be moved to the new supplier you have chosen. You should not need to do anything.

Once the switch is complete your direct debit with your old supplier should be cancelled. You could also be owed money if your account had built up credit with the old supplier.

If the direct debit hasn’t cancelled you may need to close it off through your bank. 

We'll look to appoint a supplier who will pay back money owed to you that's outstanding from a closed account. 

Although customers are transferred to the new supplier Ofgem appoints soon after the failing supplier announces they are ceasing to trade, it can take time for this to be fully processed on energy industry systems.

As such, you may have to wait a short while before you can switch away from the new supplier we appoint to look after your supply. This is also the case when you normally switch between suppliers.

The new supplier we appoint will be able to advise further.

Money you have paid into your account will be refunded to you if you are in credit. Costs for the energy you have used but have not had a bill for will be deducted from your account balance.

If you are a prepayment meter customer, credit on your meter will continue to be used as you use energy. You should continue to top up as normal if you need to.  

The new supplier we appoint will tell you about any credit balance and how they will manage this, including returning any outstanding balance you have if you want it returned.  

Our advice is to sit tight, take a photo of your meter reading and wait for the new supplier we appoint to contact you. 

This depends on what your new supplier agrees with your old supplier’s administrators.

You will need to pay back the debt to your new supplier if they arrange to take on customer debts from your old supplier. 

You will not need to pay back the debt to your new supplier if they don’t make this arrangement. However, you may have to continue to pay it back to your old supplier or their administrator.

The new supplier will explain how things will work after we have appointed them.

We’ll try to appoint a new supplier who will refund money that's outstanding on closed accounts. 

Costs for the energy you have used but have not yet had a bill for will be deducted from your account balance. 

Ofgem will always try and appoint a new supplier to cover all or some of the exiting supplier’s outstanding credit – but, it isn’t guaranteed.

The Safety Net does not cover business customer credit balances because business customers are able to apply to a supplier’s administrators about their credit balances. This is in the same way you would if any of your other service providers became insolvent.

You can find further advice in our business consumers guide. 

You can cancel your direct debit if you wish. However, you may find it is better to wait because:

• If we move you to another supplier your direct debit will be transferred to your new supplier and any credit balance you have will be protected (your new supplier will contact you with more information). If you have cancelled your direct debit this may take more time to set up.

• Alternatively, your supplier may continue to operate under an administrator and you will continue to be billed as normal (your existing supplier will contact you with more details). If you have cancelled your direct debit you would have to reinstate it with your existing supplier.

In both scenarios, your energy supply will not be disrupted and any credit balance you have will be protected. You will only ever be billed for the energy you have used.

Our advice is to sit tight, take a meter reading and wait for your supplier to contact you.

If you have already cancelled your direct debt, wait until your new supplier has got in touch with you.  

They will help you set up a new customer account and will be able to tell you what will happen with any credit balance you may have.  

We understand this may be a worrying time for many people who are facing financial hardship. 

We're working closely with suppliers to make sure customers in the scheme's 'core group' (where you get the Guarantee Credit element of Pension Credit) can continue to automatically receive the discount. 

Any broader group customer who gets the Warm Home Discount and is switched to a new supplier if their supplier fails will be able to reapply for the discount.

Once we've appointed a new supplier, you should contact them for details.

Customers that have a Smart Export Guarantee (SEG) tariff are responsible for seeking a new SEG tariff for their exported electricity from another SEG Licensee. One will not be appointed for you.

So that you can continue to receive SEG payments, you are advised to act promptly. This is because a new SEG Licensee is only obliged to make payments for exported electricity from the start of any new SEG contract.

If you had a Feed-in tariff (FIT), your FIT payments won't automatically transfer.

Once we've appointed a new supplier they will contact you to confirm your tariff information. They must also confirm if they are a FIT licensee. You may need to find another FIT supplier to continue to receive payments if the new supplier is not a FIT licensee.  

List of FIT licensees

The new supplier is not required to take on any unresolved complaints relating to your old supplier.

However, if you believe your complaint is still ongoing, once the new supplier contacts you please discuss with them how the issue can be resolved.

If your complaint was open with the Ombudsman, they will be in contact with you in due course to discuss next steps.

You can find out who your gas or electricity supplier is from a recent energy bill.

If you don't have this, see Finding your energy supplier or network operator.

In England and Wales, Citizens Advice can offer further advice if you need it.

• Call 0808 223 1133 or use their online webchat.
• For textphone, dial 18001 followed by the helpline number.

In Scotland, Advice Direct Scotland can help.

• Visit the energyadvice.scot website
• Call 0808 196 8660 or use their online webchat
• Email energyadvice.scot