What happens if the energy supplier to your business goes bust?

No. Your business energy supply won’t be disrupted. We’ll choose a new provider to take on your supply. 

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

Ofgem will choose your new supplier through a competitive process. We do this get the best possible deal for you in the circumstances.

In exceptional circumstances, Ofgem and government may ask the Court to appoint an administrator to run your existing supplier if it gets into financial difficulty, rather than move you to a new one. This is known as a Special Administration Regime (SAR). If this happens, your existing supplier will contact you about this and explain what is happening – you will be free to switch to another supplier as you wish and your credit balance will be protected. Learn more below in 'What happens if an administrator takes over my supplier?'. 

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. 

If an administrator takes over your supplier 

1. You don’t need to do anything – you will continue to receive energy from your supplier. 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 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.

It should only take us a few days to appoint a new supplier, up to a maximum of 14 days. We try to do this as quickly as possible.

Our advice is to sit tight, don’t switch and wait until the new supplier contacts you. This will make sure the process is as hassle-free as possible.

When the new supplier contacts you, ask about the business tariffs available to you. Before you agree to a new contract, you can also choose to 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 run your meter in smart mode they will operate it 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.

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 enrol on the national smart meter communication service. 

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.

Citizens Advice offers free, independent advice about business energy contracts and your rights in England and Wales.

• Call 0808 223 1133 or use their online webchat.
• For textphone, dial 18001 followed by the helpline number.
• Someone at their Extra Help Unit could take on your case if you are having difficulties with a supplier and are in a vulnerable situation.

You can also contact the government’s free Business Support Helplines.

In Scotland, Advice Direct Scotland can help:

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

For energy efficiency advice, see our page Find business energy efficiency grants and schemes.

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. Ask the new supplier about your business energy options when they contact you. 

Before you agree to a new contract, you can also choose to shop around and switch if you want to. You won’t be charged exit fees. 

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.

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. 

Your new supplier will tell you what the new deemed rate will be. 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.  

When the new supplier contacts you, ask about the business tariffs available to you. Before you agree to a new contract, you can also choose to 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. This will make sure the process goes as smoothly as possible. Once the process is complete, you will be free to switch to another tariff or supplier. 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. If the direct debit hasn’t cancelled you may need to close it off through your bank. 

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.

This will depend on the arrangements the administrator puts in place to recover money still owed to your old supplier. 

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.

Business customers' credit balances aren’t protected under the Ofgem Safety Net. Ofgem will always try and appoint a new supplier to cover all or some of the failed supplier’s outstanding credit owed – but this isn’t guaranteed. 

In most cases, you will need to contact your old supplier’s administrator about your credit balance. This is in the same way you would if any of your other service providers became insolvent.

Ofgem will always try and appoint a new supplier to cover all or some of the failed supplier’s outstanding credit – but, this 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 

Your new supplier will soon contact you to explain how they will take on your account. This will include any direct debits.

Alternatively, your existing supplier will contact you if they are taken over by an administrator. In this scenario they will continue to supply your energy and you will be billed as normal.

In either case, you can cancel your direct debit before you receive further contact if you want to. You will be able to reinstate your direct debit, or set up a new direct debit with the new supplier, at a later date.

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 account and will be able to tell you what will happen with any credit balance you may have.  

Raise the issue again with the new supplier once we have chosen them. This includes, for example, complaints you may have previously made about your account balance.

The new supplier will review if the complaint is still relevant now you have transferred to them, or if it can be closed.

Learn more about making a complaint.

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

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.