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Every energy supplier has been affected by the global rise in wholesale energy costs, forcing many to increase their tariffs and causing more than usual to collapse.
Twelve operators went bankrupt in 2021 so far. Seven of those have been in the month of September, leaving almost half a million people in need of a new supplier. According to analysis from Baringa Partners for The Times, by the end of winter, the industry could shrink to just ten energy suppliers, down from around seventy suppliers at the start of the year.
If your current provider goes bust, Ofgem will ensure that you are always connected to an energy supply. They select your new supplier by following a competitive process, which involves companies bidding on customers and is designed to get the best deal for you. Any credit you have paid into your account will be protected.
Ofgem takes care of the switch so you don't have to do anything, though there are three steps they suggest taking to ensure you don't lose out financially:
Take a meter reading, sit tight and don't switch
If you wish, cancel your direct debit. If you are already in the process of switching supplier then you will continue to move to that one. If you aren't, then don't do anything - Ofgem will try to find the best deal possible for you.
Wait for Ofgem to appoint a new supplier
Ofgem will handle everything so you can sit back and relax. Your supply won't be disrupted and the switch should only take a few days.
When the new supplier contacts you...
Ask to be put on their cheapest tariff or shop around if you want to. They will explain to you how they handle any credit refunds you are due. If you choose to leave, you won't be charged any exit fees.
You can find more information from Ofgem here, complete with a regularly-updated list on which suppliers have gone bust.
What if I'm in debt with my supplier?
Your debt will still be payable. Who it is payable to depends on what happens next - it could be payable to your new supplier, or to a different one. What is certain though is that it will not go away.
If you are worried about bills, this post lists the various support available.
