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What if your energy supplier goes out?


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As energy prices continue to rise and news of the collapse of two companies, Utility Point and People’s Energy, many of us face winter concerns. So if the worst happens and your power supply is cut off, what actually happens? Let’s take a look.

Would you shut down if your energy supplier broke down?

No. If your energy supplier is lost, you will not be shut down. In fact, there should be no barriers and you may not even be aware of any change. Instead, the industry regulator Ofgem will transfer you to a new power supplier.

What should you do if your power supply breaks down?

If your energy provider stops trading, you don’t have to do anything technically. You will be assigned a new provider in a timely manner.

However, taking a meter reading is a good idea (even better with reading your meter picture). This will make it easier to see what you owe when you find a new supplier.

Ofgem also advises you Shouldn’t If your current supplier is down, switch directly.

What happens when your energy supplier closes the business?

The first thing that will happen is that OffGame will ask other providers to bid for your business. They will then choose a new supplier, which they think can give the best service to the consumers.

It is very possible that when your custom is transferred, you will be given a ‘deemed agreement’ which is basically a default tariff. The whole process will only take a few days.

Once a new supplier is selected, they will contact you and allow you to discuss:

  • Alternative, cheap tariffs.
  • Whatever credit you had to your old supplier – you should pay your dues to the new supplier or give credit to your new account.
  • What happens to any arrears? If your new supplier has a customer on, you have to pay them what they owe. However, if they do not exist, you will need to return your old provider (or their administrator).
  • What to do with any direct debit set up for your account. If you have outstanding payments, these can still be taken by direct debit until your bill is paid.

If you talk to your new supplier and then decide that you want to go into a better deal with another supplier, you can.

What if you’re in the middle of switching power supplies?

If you are already in the process of switching, it should proceed as planned and you do not need to do anything. Of course, if you are concerned, you can contact the supplier you are contacting and contact them for reassurance.

What will happen to your smart meter?

This will depend on whether it is compatible with your new supplier’s systems and processes. If it is, you should be able to continue using it. If not, you will probably need to work on the ‘old school’ method and take meter readings instead.

What about business power customers?

The same goes for business power customers. The only difference is that Ofgem does not guarantee that you will get any credit back to your Energy account. In other words, you can lose this money. However, Ofzem says it will always try to find suppliers who are willing to respect credit business accounts.

If this is not possible, you can seek credit from the administrators to handle the liquidation of your old supplier.

How can you keep the energy bill down?

Shopping nearby and comparing tariffs is the best and fastest way to get the best energy deals. But if you’re worried about the cost of increasing energy and want another way to reduce costs, check out these practical tips for keeping bills low.

Still have questions?

If you do not find what you are looking for on this page, there are other ways to help us:

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