What if my energy supplier goes bust?
Don’t panic if your supplier goes bust. Ofgem, the energy industry regulator, will move you to a new supplier. In the meantime, you can still use your gas and electricity as normal.
When a supplier goes bust, it’s up to Ofgem to work out who will take over your energy supply. This should only take them a few days. Once that’s decided, the new supplier will contact you.
Before the new supplier gets in touch
Other than take a meter reading, there’s not much else you need to do. You could start looking around for other energy deals, but it’s best to wait until the new supplier gets in touch before signing up with anyone else. That way, it should be easier to get back any money your old supplier owes you.
When your new supplier gets in touch
Your new supplier will write to you once they’ve set up your account. They’ll let you know what tariff they’ve put you on. Usually, this will be the cheapest option, and the letter will confirm this. However, if the letter doesn’t say you’re on the cheapest tariff, you should contact your new supplier to check.
Even if your supplier has put you on their cheapest deal, it might be more expensive than what you were paying before. If you’re not satisfied, then you can switch supplier. You won’t have to pay an exit fee to do so.
Check out our How to switch supplier guide for help with switching.
If my supplier’s gone bust, what happens to my…
Under the Warm Home Discount (WHD) scheme, energy suppliers give eligible households £150 towards their electricity bills.
If you got the WHD through your old supplier
Anyone who gets the Guarantee Credit element of Pension Credit should automatically get the WHD through their new supplier.
If you got the WHD with your previous supplier but don’t get the the Guarantee Credit element of Pension Credit, you’ll need to reapply with your new supplier when the WHD scheme is next open.
If you didn’t get the WHD through your old supplier but think you might be eligible
Different suppliers have different rules about who can get the Warm Homes Discount. When your new supplier gets in touch, it’s worth asking whether you’d be eligible for their WHD scheme. If you are, then ask them when you can apply.
The Priority Service Register (PSR) gives householders extra support with their energy supply.
If you were on the PSR with your previous supplier, then you may be automatically added to your new supplier’s PSR. However, it’s worth checking this when your new supplier gets in touch.
If you weren’t on the PSR with your previous supplier, it’s worth checking out our PSR guide to see if you might be eligible. If you are, then ask your new supplier if you can be added once they get in contact.
Under the Smart Export Guarantee (SEG), you get paid for exporting renewable electricity to the grid. Unfortunately, if your supplier goes bust, Ofgem won’t set up a new SEG tariff for you. As a result, you’ll need to sign up to a new SEG tariff yourself. Ofgem keeps an up-to-date list of which suppliers offer SEG payments here.
Under the Feed-in Tariff scheme (FITs), householders are paid for generating renewable electricity. The scheme closed to new applications on 31 March 2019. Anyone who signed up before then will still get payments.
If your new supplier is not a FiT licensee, then you’ll need to find another supplier that offers FiT payments. Ofgem keeps an up-to-date list of FiT licensees here.