What happens if my energy supplier goes bust?
While most energy suppliers operate without any issues, some small suppliers have gone out of business in the last few years. There are rules in place from the energy regulator to protect consumers in the event a supplier goes out of business. In short, if this happens, Ofgem will appoint a new supplier  referred to as the supplier of last resort, or SoLR  for the affected customers. This new supplier will be vetted by Ofgem and appointed as quickly as possible to ensure that customers dont experience any disruption in their gas and/or electricity service. Take meter readings as soon as you're aware that your supplier has ceased trading, as you'll need these for your new supplier (the supplier of last resort). No. Ofgems safety net ensures your energy wont be cut off in the event your supplier goes out of business. Your new supplier will honour any credit you had built up with your olf supplier under Ofgem's SoLR rules. It takes time for your account and your balance to transfer, so if you want to switch away from the appointed supplier, it is best to wait until your account with them is set up. Ofgem says that their top priority in choosing the SoLR is to ensure that all customers continue to receive supplies of gas and/or electricity.  There are several requirements that the supplier must meet but, essentially, the supplier must show it has the ability to take on the new customers quickly and efficiently, and without significantly impacting their existing customers. The supplier of last resort must also show it has the means and ability to secure enough gas and electricity to supply these new customers without significant cost to those customers. Ofgem will also take into account whether a supplier will voluntarily reimburse any customers credit balances when selecting the SoLR. If no such supplier volunteers to accept the customers of a failed supplier, Ofgem will appoint the supplier they deem best suited to the job. Ofgem will review the profile of the existing customers of the failed supplier to determine which supplier is best positioned to take them on, taking into consideration things like:  The suppliers ability to handle issuing bills without delay  Their call centre capability  Whether they will voluntarily reimburse any customers credit balances  In one of the most recent examples, Green Network Energy ceased trading in January 2021. EDF Energy was appointed as the supplier of last resort and Green Network Energy's 360,000 customers will be automatically transferred to EDF Energy. There is no requirement to stay with a supplier of last resort but it's best to wait until your account is set up with the new supplier before you switch. Once Ofgem has appointed the new supplier, this supplier will take on the task of informing the customers of the change. This notice will also explain that customers are free to compare all energy suppliers and switch to a better plan at this time. You will be placed on a tariff with no exit fees so you will not have to pay extra to switch. Ofgem will appoint a supplier that offers the best possible deal for customers. However, it is not guaranteed that the new tariff will be the same as your old one so your bill could go up. Your new tariff will not have any exit fees so once you have been appointed a new supplier and your account is set up with them, you can compare prices and switch if you're not satisfied. For customers of Green Network Energy, new supplier EDF Energy has committed to a price decrease for all transferred customers until 30 September 2021. Unfortunately, the fixed rate contract you were on will end at the time youre moved onto the supplier of last resort. You will be placed on a new deemed contract with the new supplier. However, this deemed contract will not have any early exit fee, which means you are free to find and switch to a new plan whenever you wish. Your energy debt will not transfer to your new supplier. However, according to Ofgem, you may still need to continue to pay it off to the old supplier, even if they have gone out of business. The administrator will contact you in due course about the money you owe. Just like credit customers, customers with prepayment meters are protected by the safety net. Prepayment credit balances are already protected - any money which has been loaded onto their meter can be used as normal. As a priority, their new supplier will send them any new keys or other equipment needed to top up their meter and they should continue to use this as before. If people need to top up their meter before they get their new key they should contact their new supplier. The supplier of last resort will understand the particular difficulties associated with supplying PPM customers, and will have already proven to Ofgem to have robust systems in place to help them as quickly and efficiently as possible. If you receive the Warm Home Discount, your new supplier should honour this too. If you're a previous customer of Green Network Energy, EDF Energy will continue to pay all Warm Home Discount payments, whether you're in the core or broad eligibility group. You'll receive more information about this from your new supplier.