A Guide To Energy Suppliers Going Bust

 

After several businesses have closed in the past few weeks, this guide looks at what happens if your business goes down and what to do next.

Your provider is going bankrupt, now what?

Do not panic

The supply of electricity to the former supplier's customers will continue as part of Ofgem's "safety net" and the free balances of the domestic customers will be protected.

The customers of the outgoing supplier are transferred to a new supplier chosen by Ofgem. Choosing a new provider usually takes a few days.

What if your provider goes bankrupt?

Make sure you do not change electricity supplier before the replacement supplier contacts you.

Take a meter while reading when your new provider contacts you.

This makes it as easy as possible to transfer customers to the new provider and refund the current credit.

How do I know who the new provider is?

Ofgem will announce the new provider on its website and on social media a few days after the old provider announced it will stop marketing.

The new supplier will contact you to let you know that they will take care of the delivery. After the new supplier contacts you, you can ask them for the cheapest price available and then compare prices to get a better offer. No exit fees will be charged during this period.

Will my delivery be interrupted?

No, your delivery will not be interrupted and you will not see any changes, except for the new provider to contact you and let you know what is happening in your account.

Prepare for change

Once you've switched to the new provider, make sure that the price they pay you is competitive. If you want to make sure you buy green power (and we hope you do!), it's also a good idea to check that the electricity covered by the tax is 100% renewable.

Will I get a new contract with the new provider?

In short, yes. Your old rate and contract will expire and the new provider will send you a 'reasonable' contract that you can cancel.

Since the contracts you are looking at are some of the most expensive on the market, it is advisable to get a price and see if you can find a cheaper and greener rate elsewhere.

Will my bills go up when I'm with my new provider?

Maybe.

Your new provider offers you a special "assumption" contract (that is, one that you did not choose). "Presumed" contracts can be more expensive. The supplier is riskier, for example, it will soon have to buy large amounts of additional power for new customers. Therefore, they also charge more to offset this additional risk.

Until the new provider contacts you, you should sit quietly to protect your credit. However, once you know that the transfer has taken place, we recommend that you consider your alternative options as soon as possible.

I have credit from an existing supplier, will I lose this money?

You will not lose any credits you have with your current utility and it will roll over to the new utility and your new energy bill.

Before placing an order as a new provider, it is recommended that you record your meter reading and your account balance.

Do I have to cancel my direct debit?

You can cancel your direct debit and then reconfigure it with the new provider.

How does Ofgem's "safety net" work?

Ofgem urges providers to offer to become the new provider to get the best option for customers. Once the new supplier is selected, customers sign a new contract with the new company. Typically, the appointment of a new provider in Ofgem only takes a few days, although the transfer of clients can take several weeks.

During this time, we recommend that you sit still, do not change, and wait for your new provider to contact you. This means that the process is as free as possible for you, including repayment of loans.

Once your new supplier has contacted you, ask them to offer you their cheapest offer or to surround you if you are not satisfied with them. There are no exit fees. Read below under "Change of provider".

Too much to use

We designed energy Switch services to reduce the complexity of choosing a best business electricity supplier. We only work with vendors who know for a fact that they are offering a true green price so you can switch things around without interfering with background playback. So if you want cheap and hassle-free green electricity, get in touch with our experts and ask for a price.