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.
