In 2004, only 13 energy suppliers existed. By June 2018 it was 73. This was (in part) due to Ofgem relaxing the rules for granting supply licenses. 8 energy suppliers folded during 2018 – leaving over half a million households temporarily without an energy supplier.
In the first month of 2019, Economy Energy and Our Power ceased trading leaving over 265,000 households without an energy supplier.
| Supplier | Number of Customers | Date | The supplier customers moved to |
|---|---|---|---|
| Eversmart | 29,000 | 06/09/2019 | Utilita |
| Solarplicity | 7,500 | 15/08/2019 | EDF Energy |
| Brilliant Energy | 17,000 | 11/03/2019 | SSE |
| Our Power | 36,000 | 25/01/2019 | Utilita |
| Economy Energy | 235,000 | 09/01/2019 | OVO Energy |
| One Select | 36,000 | 10/12/2018 | Together Energy |
| Extra Energy | 108,000 | 21/11/2018 | ScottishPower |
| Usio | 7,000 | 18/10/2018 | First Utility |
| GEN4U | 500 | 13/09/2018 | Octopus Energy |
| Iresa | 100,000 | 27/07/2018 | Octopus Energy |
| Future Energy | 10,000 | 25/01/2018 | Green Star Energy |
Unfortunately, it doesn’t seem like this will be the last of the energy suppliers to fail. So, we have answered some questions that you might have after finding out that your energy supplier has gone bust.
Important Information
Take a meter reading now
To make the transfer process as smooth as possible, take a meter reading as soon as possible. Keep this reading safe as it will be helpful during the transfer process and help you avoid being charged twice for the same usage.
Will my energy supply be cut off?
There is no need to worry about this - your energy supply is safe, and you won't be disconnected.
Your power will only go out in the event of a power-cut or if you fail to pay your energy bills.
Once your new supplier and energy tariff is announced by Ofgem, you can do a price comparison and see if you can save money by switching to a cheaper energy deal.
Can I switch to a new energy supplier?
Ofgem asks that all customers hang tight and wait until the energy supplier they appoint gets in touch with you.
Once you have heard from your new energy supplier and your account has been transferred over then you are free to switch energy suppliers.
I owe my old supplier money; will I need to keep paying this to my new energy supplier?
This depends on the agreement between your new energy supplier and the administrators of your old energy company.
If your new energy supplier agrees to take on your old energy suppliers debt, then you will continue to pay them the outstanding amount.
If there is no agreement between your new supplier and the administrators for your old supplier, then you may have to continue paying your old energy company or their administrators.
Once a new energy supplier has been appointed, Ofgem will be in touch to explain the process in detail.
I am in a credit with my energy supplier; will I lose that money?
Your credit balance will be protected, and your new energy supplier will pay back any outstanding credit that you have.
Once Ofgem appoints a new energy supplier, they will contact you to explain how this works.
The cost for the energy that you have used but not yet been billed for will be deducted from your account balance.
You should take a meter reading and note of your account balance then wait for your new energy supplier to be in contact.
How do I budget for my first big bill?
You will still have to pay for any power that was unbilled or unpaid for before your energy supplier went bust. You will still have to pay for the energy that you use during the period where you have no energy supplier. So, it is important to plan your finances to cover you for this period.
Ofgem should appoint you a new energy supplier quite quickly. If you usually pay by direct debit you could put this money into a savings account and set it aside for when you receive your first bill with your new energy supplier.
Who is my new supplier likely to be?
Ofgem will invite energy suppliers to bid to take over affected customers accounts and they will appoint a supplier of last resort. Their main priority during this process is to make sure that the new supplier has the resources to handle all the additional customers and that it won’t have a negative impact on their current customers.
Do I have to stick with them?
No! As soon as you have been transferred to your new energy supplier you are safe to switch to a new energy supplier if you can find a cheaper deal or if you do not like the energy company that takes over your supply.
It might seem like a waiting game, but Ofgem will quickly appoint you a new energy supplier. Once the new energy supplier contacts you then you can decide whether to switch to another supplier or stay with this appointed supplier.
The main thing is not to panic, any credits you have with your supplier will be protected. Just make sure to take regular meter readings and keep a note of them as they will come in handy later.