What to do if your energy supplier has gone bust

Posted on 28 Sep 2021 Posted in  Utilities, Tips & Updates
Energy

Over the last few weeks, we have seen an increasing number of members searching for alternative energy suppliers on our site due to soaring gas prices and suppliers going bust. If you're one of the 1.5 million householders who have seen their energy firm collapse, we are here to help you filter through the chaos and understand your next steps.

What do you need to do?

Firstly, don’t panic - you’ll still have gas and electricity if your supplier goes bust. The gas and electricity regulator, Ofgem, will move you to a new supplier which usually takes a few weeks. Don’t switch tariff or supplier until your account is moved to the new supplier. You might find it harder to get any money you’re owed if you switch before this happens. There’s also no need to cancel any direct debits until your new account is set up.

In the meantime, take a photo of your meter reading, keep or download any old bills you have (these can prove your payment history) and make note of your account balance in your most recent statement.

When your account has been switched to a new supplier.

Your new supplier will write to you within a few weeks to let you know your new account is set up. Your new tariff may be higher because the supplier is taking on more risk and having to buy extra wholesale energy at short notice, so they may charge more to cover these costs. Despite this, you are still protected by Ofgem's Energy Price Cap. If your new tariff is more expensive than your old one, you should contact your new supplier to make sure you’re on the best tariff for you.

It’s also worth completing an energy comparison check to see what else is on offer now. If you can get a better deal elsewhere then you can switch without having to pay an exit fee. It’s worth noting, this is an extremely challenging time in the market, there may not be many tariffs available when shopping around right now.

We hope this helps you to work out your next steps. If you need more help, we recommend that you contact the Citizens Advice consumer helpline.

Comments
Member99200918490503 Oct 21 - 23:40 Middle man switching companies no longer required or needed! What an awful waste of time!
suepriestley02 Oct 21 - 15:26 Help. I switched from igloo to ovo at beginning of September. Igloo still owe me £106 I don’T know how to get it back. Wondered why I hadn’T received it. Thanks for any information
Hello,

Please could you send a support ticket through the customer service tab on your account and the team can take a look at this transaction for you.

Best wishes,
Charlotte
davey00102 Oct 21 - 09:20 My supply was swithced to British gas when pfp energy went bust. As soon as I had an account set up with British Gas I tried to switch to Sanisburys energy, (Eon next). Having set up the switch they have told me I cannot switch from British Gas for a further 28 days as the national database only allows you to change supplier every 28 days.
Obviously I tried to switch to the best offer at the time but it is unlikely I will now be able to switch to that or another offer as good as most good offers are being withdrawn.
RPark6101 Oct 21 - 20:05 Moved to People’S Energy in March after comparing offers through Top Cashback. I’Ve been chasing my £44 Cashback from tc for 6 months with no luck.
Hello,

Please send a support ticket through the customer service tab on your account and the team will be sure to look into this transaction for you.

Best wishes,
Charlotte
tahirsaddiq01 Oct 21 - 17:58 Only switched to igloo a couple of weeks. They have taken the first direct debit payment so not sure what will happen. Waiting for contact from new supplier….
richlycomic01 Oct 21 - 17:41 Managed to switch before my supplier dropped out of the market, but I did have a credit balance. I know it's protected, but I suspect i'm lower priority than anyone supplied by them when they ceased trading.
eunhwa012301 Oct 21 - 17:13 I started a switching process without knowing both my current and new supplier would go burst in the middle of process. I am in credit with my old supplier and afraid that I will be falling in the gap and have difficulty to get the money back. Any advice on what I should do now, please.
Hey,

It is suggested in our Blog that this you having issues to contact Citizens Advise consumer helpline as there may be information there which could help.

Best wishes
Phil
jabdc501 Oct 21 - 16:39 No mention of whether Top Cash Back will be honouring their payments to those who switched using their site
Hello,

We will do all that we can to secure cashback for any transactions that were made with retailers who have faced difficulties due to this.

Best wishes,
Charlotte
thedons190301 Oct 21 - 16:35 Thank you for the information. Much appreciated.
Kenius25 01 Oct 21 - 16:09 Economy Energy ?
weg30 Sep 21 - 16:32 Probably not Samluk - it's my understanding that the cashback is paid by the company you switched to, not TCB.
If that company has gone under, there will be no money for cashback.
Samluk30 Sep 21 - 15:58 Will TCB still honour the switching cashback ? If the company bust ?
Hey

We would advise that if you have made a purchase with a company that has difficuties we will do everything we can to try and get cashback for the purchase where we can for members.

Best wishes

Phil