So, your supplier has gone bust. Not to worry though, we’re here to help! We’ve put together a guide so you know exactly what happens now and how you can feel supported by Look After My Bills.
It can be a little worrying to hear your energy supplier has gone out of business. But in reality, the only difference you’ll see is that your bills will come from a different supplier.
I’ve just found out my supplier has ceased trading, do I need to do anything?
At this point, we recommend you take a meter reading and sit tight; your supplier will need this information. It’s also important you do not switch supplier at this time, because your switch is unlikely to go ahead successfully.
Will I lose my electricity or gas supply?
If your energy supplier has gone bust, you can be safe in the knowledge that you will not lose your gas or electricity supply. Ofgem has a ‘safety net’ process which means they will pass on your supply to another supplier.
Your new supplier will then contact you to advise next steps. We do not recommend signing up to any tariffs with them, as it will prevent us switching you to a cheaper deal.
When will I know who it is? And how does Ofgem choose?
Usually within a few days of the failed supplier announcing they have ceased trading, Ofgem will announce who the new supplier will be.
Ofgem has strict criteria it expects the new supplier to meet. For example, they need to prove their ability to manage the new customer accounts as effectively as it does with its current customers and to offer a competitive deal.
Will I be paying the same amount with my new supplier?
We cannot guarantee that you will be on the same rates with your new supplier. The good news is that as soon as your account is setup, you are able to switch away to a more competitive tariff if you are unhappy with the new rates.
What tariff will I be moved on to?
You will be moved on to what’s known as a ‘deemed tariff’. This will aim to match the rates you were on with the previous supplier. However, it may not be the best deal you could be on. Your new tariff will not have exit fees so you will be free to leave your new supplier once the move is complete.
What about my direct debit?
If you’d like to cancel your direct debit before your new supplier contacts you, this is not a problem. However note you will have to set this up again once you have moved over to your new supplier. Keeping your direct debit open means it is likely to be transferred over to your new supplier without setting up it again.
What happens with the credit on my account?
If you have any credit on your account from the energy supplier that’s gone bust, Ofgem has a system in place to ensure that money gets back to you. The new supplier will honour any outstanding credit balances. It may take a bit of time to reimburse this after the dust has settled.
For further information please refer to Ofgem’s information page.