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What can I do if my energy supplier goes bust?

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Thirty energy companies have stopped trading in the UK since August 2021, including Bulb, which is being managed separately because of its size.

What happens when a supplier goes bust, and what should consumers do?

Which other energy suppliers have gone bust?

More than four million households have seen their energy firm collapse since the summer, though most suppliers are tiny compared to Bulb.

Ofgem automatically moves customers to a new provider, and their supply will continue without interruption.

The companies which have gone out of business are:

Ampoweruk, Avro, Bluegreen, CNG Energy, Colorado Energy, Daligas, Enstroga, Entice Energy, Goto Energy, Green, Green Network Energy, Hub, Igloo Energy, MA Energy, MoneyPlus, Neon Reef, Omni Energy, Orbit Energy, People's Energy, PFP, Pure Planet, Simplicity, Social Energy Supply, Symbio Energy, Together Energy, Utility Point, Whoop Energy, Xcel Power, Zebra Power and Zog Energy.

Firms have struggled because they offered customers cheap fixed deals.

That meant they couldn't pass on the cost of soaring gas prices, which have risen dramatically because of a worldwide squeeze on energy supplies.

The wholesale price of gas - the price that UK fuel companies pay gas suppliers - has also gone up further because of Russia's invasion of Ukraine.

What happens if my energy supplier collapses?

If your energy provider goes bust, you still receive gas and electricity.

Because of its size, Bulb was put into an arrangement called "special administration".

The company is being run as normal by administrators Teneo, until a buyer can be found or its customers can be moved elsewhere. In the short-term, it means Bulb customers haven't been been transferred to another provider, and don't have to do anything.

Alamy Bulb on appAlamy

The accounts held by the other failed firms are automatically moved to a new supplier by energy regulator Ofgem.

You can't choose the provider and may end up on a more expensive tariff.

Ofgem has sent customers to the following suppliers:

  • British Gas: Bluegreen Energy Services, MoneyPlus Energy, Neon Reef, People's Energy, PFP Energy, Social Energy Supply, Together Energy and Zebra Power
  • British Gas Evolve: Simplicity Energy
  • EDF: Green Network, Utility Point, Zog Energy
  • Eon: Enstroga, Hub Energy, Igloo and Symbio
  • Octopus: Avro Energy
  • Pozitive Energy: CNG Energy
  • Scottish Power: Entice Energy, Orbit Energy
  • Shell: Colorado Energy, Daligas, Goto Energy, Green, Pure Planet
  • SmartestEnergy: MA Energy
  • Utilita: Omni Energy
  • Yü Energy: Ampoweruk, Xcel Power, Whoop Energy

What do I need to do?

Ofgem and Citizens Advice both recommend making a note or taking a photo of your meter reading and downloading any bills, while waiting for your new supplier to get in touch.

There's no need to cancel direct debits.

If you're in credit, the balance will be added to your account with your new supplier. However, this may take several weeks.

If you're in debt to a company which has stopped trading, you still have to pay the money you owe. You will be contacted by its administrators, or the supplier which takes over its business.

Will I still be able to find a cheap deal?

It's unlikely.

Usually, consumers are encouraged to shop around when energy bills rise.

But at the moment better offers simply aren't available. In particular, people already on fixed deals are advised to stay put.

Those coming to the end of fixed deals will be moved on to higher standard tariffs.

A tariff set at the price cap limit - the maximum price suppliers can charge customers on a standard deal - will be the most competitive.

Instead of searching for a cheaper deal, the Energy Saving Trust says simple changes to our homes and energy habits could help offset the current price rises.

How to save money on your energy bills graphic

How does the price cap work?

The price cap sets the maximum price suppliers can charge customers on a standard - or default - tariff. The level of the cap is reviewed every six months.

It's the reason energy suppliers haven't been able to pass on all of the recent wholesale gas price increases.

The energy cap rose sharply in October 2021 and again in April 2022.

Ofgem has warned that a typical energy is likely to rise by a further £800 in October when the cap is next reviewed.

After reviewing the cap, the regulator has also proposed that in future the cap should be updated quarterly rather than every six months.

The price cap does not apply in Northern Ireland, which has its own energy market, but a number of suppliers there have also announced price increases.