What happens if my energy supplier goes out of business?
The safety net that moves you to a new supplier automatically, what happens to a credit balance, and the two things to do on the day you hear.
- Difficulty
- beginner
- Time
- 30 min
- Read
- 3 min
Short answer
Do nothing dramatic. In Great Britain, Ofgem appoints a new supplier for you — the Utility Regulator does the equivalent in Northern Ireland — your gas and electricity keep flowing, and domestic credit balances are protected. Take a meter reading and a screenshot of your balance immediately, then wait to be contacted.
This is information about how the supplier-of-last-resort process works, not advice about your account. The instinct when a company fails is to switch fast or cancel the direct debit; both make things worse. The protections only work if you stay put long enough for them to operate.
Step by step
- Take a meter reading straight away.Photograph the meter with the reading visible. This is the single most useful thing you can do — it fixes the boundary between the old account and the new one.
- Screenshot your account balance and recent statements.Download anything the online account will give you. Once the portal is switched off, getting a copy becomes slow.
- Do not cancel your direct debit.Cancelling makes you look like you are avoiding payment and complicates the transfer. The new supplier will set up a fresh arrangement and the old one will stop collecting.
- Do not try to switch yourself yet.A switch in progress can stall the transfer to the appointed supplier. Wait until the new supplier has your account and has confirmed it.
- Wait for Ofgem to name the new supplier.This normally takes days rather than weeks and is announced publicly. Your supply is never cut off during it — the physical gas and electricity are unaffected.
- Check what tariff you have been put on.You will usually be placed on a deemed tariff, which is rarely the cheapest. There is no exit fee on it.
- Give the new supplier your reading.Provide the reading and photograph you took. If they issue an opening balance that does not match, this is your evidence.
- Ask about any credit balance.Domestic credit balances are protected in this process. Ask the new supplier how yours is being handled and get the answer in writing.
- Then, and only then, compare tariffs.Once the account is stable and the balance is settled, you can switch freely. Doing it in that order keeps everything traceable.
Tips
- Photograph the meter on the day you hear the news, even if you do not know yet whether it matters. It costs nothing and it is the evidence everything else depends on.
- Keep every email from both suppliers in one folder until the opening balance is agreed.
- If you were in credit and it does not appear, raise it as a formal complaint with the new supplier before going anywhere else.
Common mistakes
- Cancelling the direct debit immediately — It does not protect your money — credit balances are protected anyway — and it leaves you looking like a non-payer while the account transfers.
- Starting a switch mid-transfer — Two processes competing for the same meter point is the main reason people end up with a months-long billing mess.
If it doesn't work
The opening balance from the new supplier looks wrong
Cause: They have used an estimated rather than an actual reading — Fix: Send the dated photograph of the meter and ask them to rebill from it.
No contact from anyone weeks later
Cause: The transfer has stalled at the data level — Fix: Contact the appointed supplier directly with your meter point number, which is on an old bill.
The new tariff is much more expensive
Cause: You have been placed on a deemed contract — Fix: There is no exit fee. Compare and switch once the account is settled.
Questions people ask
Will my gas or electricity be cut off?
No. The physical supply is separate from the company that bills you, and it continues throughout. A supplier failing is a commercial event, not a supply event.
What happens to a fixed tariff I had?
It generally does not survive the transfer — you are moved onto the new supplier's deemed tariff. There is no exit fee to leave that, so you can shop around.
Where can I check the official position?
Ofgem publishes guidance for customers of failed suppliers and names the appointed supplier. Citizens Advice also runs the consumer service for energy problems.