What it means when your energy supplier goes bust
When your energy supplier goes bust, it means the company has stopped trading – usually because it’s gone bankrupt or can no longer meet its financial obligations. This can sound alarming, but it’s a situation that’s been planned for by both the government and the energy regulator, Ofgem, to protect consumers like you.
Will my gas or electricity be cut off?
No, your supply will not be cut off, even if your supplier has ceased trading. The gas and electricity you use are delivered through national networks, which are not owned by your supplier. This means your energy will keep flowing as normal while arrangements are made to transfer your account to a new provider.
What happens next?
Ofgem steps in to manage the process and ensure customers are protected. The regulator will appoint a new supplier, known as a “Supplier of Last Resort” (SoLR), to take over your account. This transition is designed to be as smooth as possible, with no interruption to your energy supply. You do not need to contact anyone immediately; your new supplier will reach out with details about your new account and tariff.
What about your account and credit balances?
If you have a credit balance with your old supplier, Ofgem’s rules require the new supplier to honour it in most cases. This means your money should be safe, although it can take some time to process. If you owe money, the new supplier will let you know how this will be handled.
Who’s responsible for overseeing this?
The government and Ofgem work together to protect consumers when a supplier fails. Their main priorities are to keep your supply running, safeguard your money, and help you understand your options. They set out clear guidelines and legal requirements for suppliers to follow, including those found in the Gas Act 1986 and the Electricity Act 1989, which give Ofgem the authority to step in and appoint a new supplier.
What should you do?
While you don’t need to take immediate action, it’s a good idea to take a meter reading and keep a record of your last bill. This will help when your new supplier contacts you. When you receive details of your new tariff, you’re free to shop around for a better deal if you wish.
If you want to learn more about other issues you might face with your energy provider, see our guide on problems with your energy supply or supplier. This can help you understand your rights and the steps you can take in a range of situations.
How your energy supply is protected if your supplier goes bust
When your energy supplier goes out of business, you don’t need to worry about your gas or electricity supply being cut off. The government and energy regulator, Ofgem, have put protections in place to make sure you continue to receive energy without interruption. This is managed through the Supplier of Last Resort (SoLR) process.
What is the Supplier of Last Resort (SoLR) process?
The SoLR process is a legal and regulatory safeguard designed to protect consumers if their energy supplier fails. Ofgem, the regulator for gas and electricity markets in Great Britain, steps in to quickly appoint a new supplier to take over your energy account. The detailed steps and considerations Ofgem follows are set out in their Supplier of Last Resort (SoLR) process.
How is your supply protected?
As a customer, your gas and electricity supply will continue as normal while Ofgem finds a new supplier. There’s no need to contact anyone immediately or worry about your home losing power. The transfer is automatic – you won’t need to install new equipment or make changes to your meter.
What happens next?
Once a new supplier has been appointed, they will contact you to explain what happens to your account, including any credit balances or debts. Your new supplier will let you know about your new tariff and terms. You have the right to switch to a different tariff or supplier if you’re not happy with their offer, without paying an exit fee.
If you’d like to know which company has taken over your supply, you can check who’s taken over your energy supply.
Your rights during the transition
No interruption to supply: Your energy will keep flowing as usual throughout the process.
Account protection: Any credit you had with your old supplier is usually protected and will be transferred to your new account, subject to Ofgem’s rules.
Choice and flexibility: You’re not locked in – you can shop around for a better deal or switch suppliers if you wish.
Clear communication: The new supplier will contact you with details about your account, including how to provide meter readings and what happens to your payments.
How are payments and accounts handled?
Your new supplier will explain how they will handle your existing balance, whether you were in credit or owed money. It’s a good idea to take a meter reading as soon as you find out your supplier has gone bust, to ensure your account is accurate when it’s transferred. Keep any recent bills or statements handy, as they may help resolve any questions about your balance.
For more detailed information about the rules and protections in place, you can read Ofgem’s Supplier of Last Resort (SoLR) process, which explains how customers are protected and what steps are taken if a supplier fails.
If you have more questions or want to know what to do next, you can check who’s taken over your energy supply for the latest updates.
What you should do if your energy supplier has gone bust
When you find out your energy supplier has gone bust, it’s natural to feel concerned about your gas or electricity supply and what to do next. Here are the key steps you should take to protect yourself and make the transition as smooth as possible:
1. Don’t Panic – Your Supply Won’t Be Cut Off
By law, your gas and electricity will continue to flow even if your supplier goes out of business. Ofgem, the energy regulator, will appoint a new supplier for you, known as a “Supplier of Last Resort.” This process is designed to protect customers and ensure you remain connected.
2. Take a Meter Reading and Gather Your Account Details
As soon as you hear your supplier has gone bust, take a photo or note of your current meter readings for both gas and electricity. Keep a copy for your records. Collect any recent bills, statements, or correspondence with your old supplier. These details will help ensure your account is transferred correctly and you’re billed accurately by your new supplier.
3. Find Out Who Your New Supplier Is
Ofgem will choose a new supplier to take over your account. You don’t need to do anything immediately, but it’s important to find out who your new supplier is. You can check who’s taken over your energy supply to confirm which company is now responsible for your gas or electricity.
4. Wait for Your New Supplier to Contact You
Your new supplier will get in touch to explain what happens next, including details about your new tariff and how your credit or debt with your previous supplier will be managed. Until you hear from them, don’t try to switch suppliers or change your direct debit arrangements.
5. Review Your New Tariff and Compare Options
The tariff you’re moved to may not be the cheapest available. Once your new supplier has contacted you and your account is set up, you’re free to shop around and switch to another provider if you wish. Compare deals to see if you can save money, but make sure your final bill and any credit from your old supplier have been settled first.
6. Keep Records of All Communications
Save all emails, letters, and notes of phone calls with your new and old suppliers. Keep copies of your meter readings and any payments you make. This documentation can be vital if there are disputes about your final bill or credit balance.
7. If You Didn’t Agree to the Switch
If you believe you were moved to a new supplier without your consent, you have rights. Find out what you can do if you didn’t agree to switch energy supplier.
8. Get Help If You Have Questions or Problems
If you experience issues during the transition – such as problems with your final bill, missing credit, or difficulty contacting your new supplier – you can complain about an energy company. The complaints process is there to ensure your concerns are addressed fairly.
By following these steps and keeping clear records, you can protect your rights and ensure a smooth transition when your energy supplier goes bust. If you’re unsure about any part of the process, don’t hesitate to seek advice or raise a complaint if needed.
Your rights and protections as an energy consumer
Your rights and protections as an energy consumer
If your energy supplier goes bust, you are protected by a range of rights designed to keep your supply running and safeguard your interests. Here’s what you can expect and the steps you can take to ensure you’re treated fairly during this process.
Your right to continuous energy supply
By law, your gas and electricity supply will not be cut off if your supplier fails. Ofgem, the UK’s energy regulator, will automatically appoint a new supplier to take over your account. This process is called the Supplier of Last Resort (SoLR) mechanism. You do not need to do anything immediately – your energy will continue as normal while the transition takes place. For more on your rights during this process, see Energy Supply Regulations.
Protection against unfair treatment or discrimination
You have the right to be treated fairly and without discrimination by energy suppliers, even during times of change. This means suppliers cannot refuse to serve you or treat you differently based on your age, disability, race, or other protected characteristics. If you believe you have been treated unfairly, you can learn more about how to fight discrimination by energy suppliers.
Compensation for power cuts or service issues
If you experience power cuts or service interruptions during the changeover to a new supplier, you may be entitled to compensation. The rules set out by Ofgem ensure that customers are compensated for unplanned outages or delays in restoring supply. Find out how to get compensation if you have a power cut and what steps you need to take to make a claim.
Your rights regarding billing and payments
When a new supplier takes over, they will contact you about your account. You have the right to a clear and accurate final bill from your old supplier, and you should not be charged twice for the same energy. Any credit on your account (for example, if you’ve overpaid) should be protected and transferred to the new supplier or refunded to you. If you owe money, the new supplier will explain how payments will be managed. Always take a meter reading as soon as you hear your supplier has gone bust to help ensure your bills are accurate.
Support if you are struggling to pay your energy bills
If you’re worried about paying your energy bills during this period, help is available. You have the right to ask for support, such as payment plans or access to hardship funds. For practical advice and options, see our guide on struggling to pay your energy bills.
Extra support for vulnerable customers
If you or someone in your household is elderly, disabled, or has specific needs, you can register for extra support with your new supplier. This might include priority services during power cuts or help with reading your meter. Learn more about getting extra support from your energy supplier.
For further details on your rights and what to expect if your energy supplier goes bust, Ofgem provides comprehensive guidance on Energy Supply Regulations. This resource explains the protections in place to ensure you stay connected and are treated fairly throughout the process.
What to do if you use a prepayment meter or are on a heat network
If you have a prepayment meter or your home is part of a heat network, there are some important steps to follow if your energy supplier goes bust.
Using a prepayment meter when your supplier goes bust
If you have a prepayment meter (sometimes called a pay-as-you-go meter), you might be worried about how to keep your gas or electricity topped up. The good news is that your supply will not be cut off, and your meter should continue to work as normal. You can usually keep topping up at your usual shop or outlet.
However, if you have problems getting to or topping up your prepayment meter – for example, if your key or card stops working, or you can’t add credit – you should contact your new supplier as soon as possible. Ofgem, the energy regulator, will appoint a new supplier to take over your account, and they are responsible for making sure you can continue to access energy. Keep any receipts or proof of top-ups, as you may need these if there are any issues with your balance or credit.
If you are owed money by your old supplier (for example, if you had credit on your meter), the new supplier will let you know how this will be handled. You should also check whether any debt you owed to your old supplier will be transferred – your new supplier will explain what happens next.
If your home is on a heat network
If you receive your heating and hot water through a communal or district heating system, you are on what’s known as a heat network. The rules are slightly different in these cases, as heat networks are not regulated by Ofgem in the same way as gas and electricity suppliers. If your heat supplier goes bust, you may have different rights and protections.
To understand what to do next, and to find out who to contact, read more about what happens if your home is on a heat network. This will help you know your options and where to get support if there are any interruptions to your heating or hot water.
Where to find help
If you’re having trouble topping up, worried about your credit, or unsure what to do, your new supplier should be your first point of contact. They are responsible for making sure you can continue to use your energy as normal. You can also find more advice in the links above for specific issues with prepayment meters or heat networks.
Remember, you have rights as a consumer, and there are protections in place to make sure you stay connected, even if your energy supplier goes out of business.
Preparing for and dealing with potential power cuts
When your energy supplier goes bust, it’s natural to worry about interruptions to your gas or electricity supply. The good news is that power cuts are rare during the transition to a new supplier, as regulators and network operators work hard to keep your energy flowing. However, it’s sensible to be prepared, just in case there is a temporary disruption.
Why might power cuts happen?
While Ofgem, the UK’s energy regulator, ensures that your supply is protected and transferred smoothly, there may be occasional technical issues during the switch to a new supplier. These are uncommon, but knowing what to do can help you stay safe and minimise inconvenience.
How to prepare for potential power cuts
Taking a few simple steps can help you manage if your electricity goes off unexpectedly. It’s a good idea to keep a torch (with working batteries), some blankets, and a charged mobile phone handy in case of an emergency. If you rely on medical equipment that needs electricity, make sure you have a backup plan and let your network operator know about your situation.
For a detailed checklist and more practical advice, see our guide on power cuts – preparation and tips.
Managing without energy during a power cut
If a power cut does happen, try to stay calm. Check whether your neighbours are affected to determine if it’s a wider issue or just your property. Turn off electrical appliances to avoid damage when the power returns, and keep your freezer and fridge doors closed to preserve food for as long as possible. If you need to use candles, do so safely and never leave them unattended.
Your rights and where to get help
You are protected by UK law when it comes to your electricity supply. The Electricity Act 1989 sets out the legal framework for electricity supply and the responsibilities of suppliers and network operators. This means you have the right to a reliable supply and, in some cases, to compensation if you experience an extended power cut.
If you’ve suffered a power cut and want to know if you can claim compensation, read our advice on how to get compensation if you have a power cut.
Staying informed and prepared can give you peace of mind as your energy supply is transferred to a new provider. If you have further questions about your rights or need more support, don’t hesitate to reach out to your local network operator or consult the resources linked above.
Understanding costs and charges during and after your supplier goes bust
When your energy supplier goes out of business, it’s natural to worry about how this will affect your bills – especially if you rent your home or are unsure what you’ll be charged next. Here’s what you need to know about costs and charges during this transition, your rights, and how to protect yourself from unfair billing.
What your landlord can charge you for energy
If you rent your property and your landlord manages your energy supply – meaning you pay them directly for gas or electricity rather than dealing with the energy company yourself – there are specific rules about what they can charge you. Even if your supplier has gone bust, your landlord can’t simply set any price they like. There are legal limits and protections in place to ensure tenants are treated fairly. To understand your rights and the maximum prices landlords can charge, read more about what your landlord can charge for energy.
How charges might change with a new supplier
When an energy supplier goes bust, Ofgem – the energy regulator – will appoint a new supplier to take over your supply. This is called the “Supplier of Last Resort” process. While your gas and electricity will continue without interruption, the new supplier may put you on a “deemed” or default tariff. These tariffs can sometimes be higher than your previous rates, at least in the short term.
You are not locked into this new tariff. Once your new supplier contacts you, you can ask about their best deals or shop around for a better offer. Remember, you won’t be charged exit fees if you decide to switch to a different supplier after your old one has gone bust.
Reviewing your bills and questioning unexpected charges
It’s important to check your bills carefully during this period. Keep an eye out for:
Charges that seem unusually high compared to your previous bills
Charges for periods when your old supplier was in business, as you shouldn’t be billed twice for the same energy use
Any unexplained fees or costs
If you spot something that doesn’t look right, contact your new supplier and ask for a breakdown of the charges. It’s a good idea to take meter readings as soon as you learn your supplier has gone bust, and again when your new supplier takes over, to ensure your bills are accurate.
Your rights to fair pricing and billing transparency
UK law protects your right to fair and transparent energy billing. Suppliers are required to:
Provide clear information about how your charges are calculated
Explain any changes to your tariff or pricing
Give you reasonable notice before making changes to your contract
If you feel you’re being charged unfairly, or your bills are unclear, you have the right to ask for a detailed explanation and to challenge any charges you disagree with. If problems aren’t resolved, you can escalate your complaint to the Energy Ombudsman.
By staying informed and checking your bills, you can make sure you’re not overcharged and that you understand your rights throughout the process of your supplier going bust.
Managing your energy use and insurance after your supplier goes bust
When your energy supplier goes bust, it’s natural to worry about your bills and whether your home is protected. Here’s what you need to know about managing your energy use and reviewing your insurance during this uncertain time.
Smart ways to manage and reduce your energy use
While your supply will continue, it’s wise to keep a close eye on your energy use – especially if you’re waiting for a new supplier to take over. Reducing your usage can help you save money and avoid unexpected costs. Simple steps include:
Turning off lights and appliances when not in use
Lowering your thermostat by one or two degrees
Using energy-efficient bulbs and appliances
Taking shorter showers or using cold water cycles for laundry
For more practical advice, see these energy management tips.
How supplier issues might affect your home insurance
Most standard home insurance policies do not cover losses caused by energy supplier failure itself. However, if a prolonged loss of gas or electricity leads to damage – such as burst pipes due to freezing or spoiled food – your policy might offer some protection. It’s important to understand exactly what your insurance covers.
Checking your policy for energy supply interruptions
Review your policy documents to see if you’re covered for damage or losses resulting from power cuts or supply interruptions. Look for sections related to “accidental damage,” “emergency home cover,” or “loss of perishable goods.” If you’re unsure, contact your insurer directly for clarification.
To get a better understanding of what’s typically included, read our guide to home insurance in the UK.
Where to find more help
If you want to explore further ways to cut costs and keep your home safe, browse our energy management tips. For questions about your insurance, consult your policy or speak to your provider. Staying informed and proactive will help you manage your home and finances while your energy situation is resolved.
