Rising energy costs continue to impact the market, though conditions have changed since the 2021 crisis. This guide explains what to do if your energy supplier closes down.
Gas prices rose sharply across Europe starting in 2021. This happened because of lower gas reserves after a cold winter and higher demand from Asian markets.
The UK was hit hard because most UK homes (85%) use gas for heating. The situation was made worse by less wind power generation and damage to a key power connection between France and the UK.
Since then, the energy market has seen periods of ups and downs. Supplier failures can still happen, so it's important to know what steps to take if you're affected.
Don't panic. Your gas and electricity supply will continue without interruption. Ofgem (the energy regulator) will automatically move you to a new supplier.
While the new tariff might be higher than your previous one, especially if you were on a special deal, it will still be protected by Ofgem's price cap. This price cap sets the maximum amount any supplier can charge for a standard variable tariff. The cap is adjusted quarterly by Ofgem based on wholesale energy prices.
Let Ofgem handle the transfer to a new supplier. While you wait:
💡 Take meter readings
💡 Keep your old bills in a safe place
💡 Download any online bills for your records
Taking photos of your meter readings provides extra proof of your usage.
If you have a smart meter, readings should transfer automatically, but that isn’t always the case. It's always good practice to note down your readings manually as backup.
No. Your gas and electricity will continue during the transfer process. If you owed money to your old supplier, your new supplier will contact you to arrange a payment plan.
Under current rules, suppliers must work with customers to find affordable payment plans. If you're having difficulty paying, ask about the Priority Services Register for additional support.
If your account was in credit (you had paid more than you used), this money is protected for domestic customers. Your new supplier will contact you about transferring this credit to your new account.
Regulations have been strengthened since 2022 to ensure faster transfer of credit balances when suppliers fail. This means your money is better protected, and you should receive your credit balance more quickly than in the past.
Ofgem now requires the new supplier to honour your credit balance and either apply it to your new account or refund it to you within a specified timeframe, typically within 14 days of contacting you.
Many energy suppliers have left the market in recent years. Here's a comprehensive list of companies that have gone bust and their replacement suppliers:
If your supplier has gone bust, your account will transfer to a new supplier. They'll contact you when they've set up your account, which may take a few weeks.
Most customers now receive notification of their new supplier within 5-7 days.
If you don't hear from your new supplier, contact the Energy Networks Association's Find My Supplier service by phone at 105. You can also check with Ofgem.
Yes. If you're unhappy with your new supplier or their rates, you can switch. First, ask your new supplier if they can offer you a better deal. If not, you can change to another supplier without paying an exit fee.
You can contact different suppliers directly or use a comparison website to find the best deal. Most comparison sites now offer easy online switching services.
The switching process now typically takes 5-7 days, much faster than the previous three-week timeframe, thanks to new switching regulations.
You can switch at any time. However, if you're owed money by your old supplier, it's best to wait until your account has been transferred to the new supplier. Switching too early could complicate the process.
Some fixed-term tariffs may have exit fees if you leave early, but these don't apply when your supplier has gone bust. Always check your contract terms before switching.
If you're struggling with energy bills, several support options are likely available:
💡Warm Home Discount: a one-off discount on electricity bills for eligible households (this is a seasonal offering)
💡 Winter Fuel Payments: annual payments to help pensioners with heating costs
💡 Cold Weather Payments: additional support during periods of very cold weather
💡 Energy supplier grants: many suppliers offer hardship funds and payment assistance
💡 Priority Services Register: extra support for vulnerable customers
To reduce your energy usage and lower bills:
✅Improve your home insulation
✅ Use a smart thermostat
✅ Switch to energy-efficient appliances
✅ Install LED lighting
✅ Get your heating system serviced regularly
Note: Regulations and market conditions may change, so always check with Ofgem or Citizens Advice for the most up-to-date guidance.
Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.
Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.
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