It's a phrase that can send a shiver down your spine: 'your energy supplier has gone bust.' The immediate thought is often about being left in the dark, literally. But here's the reassuring truth, thanks to Ofgem's safety net: you won't be cut off. Your energy supply is protected, and a new supplier will be appointed to take over.
So, what's the actual process when this happens? First off, don't panic. The advice is simple: take a meter reading, sit tight, and absolutely do not switch suppliers yourself. If you already had a switch in progress, that will continue as planned. Your main job is to wait for Ofgem to find you a new energy provider. This usually takes just a few days.
During this interim period, you'll be placed on a special 'deemed' contract with your new supplier. Now, these contracts can sometimes be a bit more expensive than your previous one, so your bills might go up. Ofgem does try to secure the best possible deal, and importantly, these deemed contracts are covered by the energy price cap, ensuring you're still getting a fair price. The good news is you're not locked in; you can switch tariffs or suppliers whenever you like, without any exit fees.
Once your new supplier gets in touch, they'll explain how they'll manage your account, including any credit balance you might have had with your old supplier. It's at this point you can ask them to put you on their cheapest tariff, or if you're feeling adventurous, you can shop around and switch to a different company altogether. Remember, no exit fees apply in this situation.
For those with smart meters, things are usually smooth. If your new supplier can't immediately operate your smart meter in its full smart mode, it will still function as a traditional meter. This might mean you need to manually submit readings for a while. If you do decide to switch to a new supplier, your meter might regain its smart capabilities depending on the tariff and supplier you choose.
If you're on a prepayment meter, you should still be able to top up as usual while Ofgem sorts things out. Your new supplier will then guide you on getting new key cards or tokens. If you run into any trouble topping up, your card or token stops working, or you can't afford to top up and need emergency credit, Citizens Advice or Advice Direct Scotland (if you're in Scotland) are there to help. They offer support through phone lines and online webchats.
For those with a Smart Export Guarantee (SEG) tariff, it's a bit different. You'll need to actively find a new SEG tariff for your exported electricity, as one won't be automatically appointed for you. Acting promptly here is key to continuing to receive payments for the energy you export.
Similarly, if you receive Feed-in Tariff (FIT) payments, these won't automatically transfer if your FIT Licensee goes bust. Ofgem may issue directions to ensure you receive payments due before your old licensee stopped trading. However, you'll still need to contact a new energy supplier who is a FIT Licensee and arrange for them to take over your FIT payments. If you don't, your payments will be paused.
Finally, a quick note on complaints. Your new supplier isn't obligated to handle complaints that relate to your old, now-defunct, supplier. For those, you'll likely need to pursue them separately.
