Disclaimer: The information on this page was correct as of October 27, 2021.
As we’ve seen recently, even the biggest companies can go bust. If you’ve just heard that your energy supplier has gone bust, you might be worried about your energy supply. There’s no need to panic, we’ll talk you through everything that might be troubling you.
- What does it mean to go bust?
- What happens if your supplier goes bust
- Which suppliers have gone bust and who has taken over?
- Will your energy supply go off?
- How to find out who your new supplier is
- Switching before you have a new supplier
- What happens to your tariff?
- What you need to do
- What happens to money owed?
- What happens to credit on your prepayment meter?
- Will you need a new top-up key/card?
- Warm Home Discount
- Complaints about your supplier
What does ‘going bust’ mean?
When a company goes bust, it means that it’s losing so much money that it’s forced to close. This could be for a number of reasons – they might be in a lot of debt, be losing customers, or have high costs they can no longer afford.
However, sometimes companies who have ‘gone bust’ have really just been bought out by another company.
What happens if your supplier goes bust
If your energy supplier goes bust, it’s up to Ofgem, the gas and electricity regulator, to appoint a new supplier to take over their customers. Companies will offer bids and compete to get the best deal. This normally only takes a few days, but when a new supplier has been appointed, they’ll contact all of their new customers with the information you need.
When appointing a new supplier, Ofgem makes sure:
- They have arrangements in place to be able to supply enough new customers
- They are able to pay back any credit owed from the old supplier
- They can minimise disruption to the new customers
- They’re able to deal with more customer queries effectively and efficiently
- They have arrangements in place to rectify any prepayment issues that might come up
- The new tariffs are fair to new customers (they can still be higher than your old supplier, but must be reasonable)
Has my supplier gone bust?
You often see smaller energy providers going bust and being taken over by a larger company. We’ve compiled a list of providers which have gone bust since January 2020 and who has taken over their supply.
|Suppliers gone bust||New supplier|
|Symbio Energy||EON Next|
|Igloo Energy||EON Next|
|Avro Energy||Octopus Energy|
|Nabuh Energy||British Gas|
|Simplicity Energy||British Gas|
|Green Network Energy||EDF Energy|
|Yorkshire Energy||Scottish Power|
|Green Star Energy||Shell Energy|
|Tonik Energy||Scottish Power|
|Bristol Energy (domestic)||Together Energy|
|Robin Hood Energy||British Gas|
|White Rose Energy||British Gas|
|Citizen Energy||British Gas|
|RAM Energy||British Gas|
|Angelic Energy||British Gas|
|Beam Energy||British Gas|
|Fosse Energy||British Gas|
|Southend Energy||British Gas|
|Your Energy Sussex||British Gas|
|Great North Energy||British Gas|
|Go Effortless Energy||Octopus Energy|
|Bristol Energy (non-domestic)||Yu Energy|
|Foxglove Energy||Outfox the Market|
|iSupply Energy||EDF Energy|
If your supplier is being sold or changing its name, they’ll contact you to let you know your new supplier and when your account will be moved over.
Will my energy supply be cut off?
Great news, there’ll be no disruption to your gas or electricity supply thanks to Ofgem’s safety net. This safety net makes sure that the only thing affected on your end is your energy supplier and tariff.
How do I know who my new supplier is?
When Ofgem has appointed a new supplier to take over (a Supplier of Last Resort), your new supplier should contact you to let you know that they’re taking over, what will happen to your account, and if there’s anything extra you’ll need to do.
If you haven’t heard anything within 2 weeks you can contact Citizen’s Advice or your old supplier might post it online.
Can I switch if Ofgem hasn’t found me a supplier yet?
Ofgem recommends that you should wait until a new supplier has been appointed, however, it’s still just as easy to switch.
It may make it more difficult to receive any money you’re owed from your old supplier if you switch before your account is moved over, but if you’re already in the process of switching it will continue as normal.
For help with switching, give Utility Switchboard a call on
Will I be on the same tariff?
Because you’ll be with a new supplier, you’ll be put on a new tariff. Some companies might honour your current contract, however, you can find out more about which tariff you’re on when your new supplier contacts you.
Because the new supplier has to buy more energy to cover its new customers, the tariff they put you on (the ‘deemed’ tariff) might be more expensive than your old one. To save money here, you can ask to be placed on a different, cheaper tariff when they contact you.
You might want to stick around with your new supplier for a bit, however, if your supplier has gone bust, you won’t have to pay any exit fees. It might be worth shopping around and comparing other companies to see if you can save more.
What you need to do
You don’t need to do a lot. The only thing you have to do is take a meter reading as soon as you hear that your supplier has gone bust ready to give to your new supplier. Keep or download any bills you already have and make a note of your account balance. These can help prove your payment history and whether or not you have any credit which needs to be refunded.
According to Ofgem, you don’t have to worry about cancelling your direct debit. Your new supplier should be able to move the details over to your new account for you. If you’ve already cancelled your direct debit, your new supplier can set up a new one when they contact you to set up your account with them.
What happens to credit and debt owed on your account
Your new supplier will pay back any money you’re owed. When choosing a supplier to take over the failed business, Ofgem takes into account the likelihood of paying back credit when it appoints the new supplier. You can choose for your credit to be refunded or transferred into your new account.
Unfortunately, your debts won’t be written off. If you have debts with your old supplier, you may be contacted by the administrators of the old supplier. If you’re paying back your debts with a prepayment meter, you might not be able to continue on the agreed plan as the administrator don’t hold the same payment rules as energy companies – you might have to pay it back all at once.
Alternatively, the debt might transfer to your new supplier and you work out a payment plan with them instead.
What happens to credit you have on your prepayment meter?
If you have credit on your key or card, it will be honoured and you use it as normal. It’s advised that between your supplier going bust and your new supplier getting in touch, you only top up small amounts. This is because, if you have a smart prepayment meter, there’s a chance it could be wiped. You’ll get your money back, of course, but it can be a long process.
It’s worth remembering that because you’re with a new supplier, you’ll be on a new tariff with different rates so your credit might not last as long as before.
Will you need a new prepayment key or card?
You might need a new prepayment key or card if your new supplier uses a different type. However, you can still use your current one until your new one arrives. When it does arrive, you should start using it as soon as it comes so that your new supplier can keep track of your spending and usage.
It’s worth noting that you might not be able to top up in the same place you usually would. For example, some suppliers might only let you pay at a PayPoint, while others let you pay at PayPoint and Payzone. Your new supplier should let you know when they contact you, but you can find your local top-up outlets here:
What happens to my Warm Home Discount?
Get £140 from the Warm Home Discount
Let us guide you through the Warm Home Discount and find you the right tariff that can also give you an additional £140 from the Warm Home Discount.
Even if you’ve already been accepted into the Warm Home Discount scheme, you might not be able to receive it from the new supplier.
If you’re in the core group (receive the Guarantee Credit element of Pension Credit), you’ll still be able to receive it, no matter who you switch to. You’ll have to let the Department of Work and Pensions know who your new supplier is, which you can do by calling 0800 731 0214.
If you’re in the broader group you might miss out if your new supplier doesn’t offer the scheme. It might be worth switching to a new supplier which does offer the discount, however, you might be saving more than £140 on a tariff with your new provider.
What to do about complaints
If you’ve made a complaint about your old supplier which hasn’t been resolved yet, you’ll have to raise the issue again with your new supplier. Your new supplier will review whether or not it is still relevant now that it has been transferred or if it can be closed.
This includes any complaints you may have raised about your account balance.