Businesses close all the time and energy suppliers are no exception. Energy suppliers can cease trading for a number of reasons, the most common explanation is that they are unable to afford to purchase enough energy to provide to their customers.
Due to the 2021 energy crisis around 30 energy suppliers left the market.
What happens now?
If your energy supplier has ceased trading, you do not need to worry. Your energy supply is protected by Ofgem and you will not be cut off. Your credit balance will be protected and Ofgem will appoint a new supplier to take over your account. This process is known as ‘Supplier of last resort’ or SOLR.
The new supplier will be in touch with details of your new account and tariff, they will require a meter reading from the date they took over the account so it’s a good idea to take one as soon as possible. You should contact them if you’ve not heard from them within a couple of weeks.
Do not switch your energy supplier in the meantime. You may have difficulty if you need emergency support or need to retrieve a credit balance. Wait until your new supplier has set up your account and confirmed your old suppliers final bill.
I’ve just heard my supplier has gone out of business, what do I do?
If you’ve just heard that your supplier has ceased trading read this blog carefully. As soon as possible you should do the following
- You should take meter readings as soon as possible if you can take a date-stamped photo although this isn’t essential.
- Keep any old bills you may have; these are helpful if you need to prove your account balance or payment history.
- Make a note of your account balance at the time you heard the supplier went out of business.
- Your direct debit will transfer to your new supplier however you can cancel it now if you want to and set it up with the new supplier later.
Special Administration Regimes
Bulb Energy fell into administration on 22nd November 2021. Due to the size of bulb the Supplier of Last Resort procedure was not suitable, as no other supplier could have taken on Bulb’s 1.7m customers.
Instead administrators were appointed to run the company until the supplier’s customers could be transferred to another company, at the time, Octopus Energy.
Customers continued to access energy as normal, and nothing really changed.
If a large energy supplier fails in future, the SAR may be used again.
Frequently asked questions
Speak to Cosy Kingdom
Remember, Cosy Kingdom is here to help. If you have any additional questions or would like advice tailored to your own unique situation you should get in touch to speak to one of our energy advisors.
Our energy advisors can be contacted by: