Industry Updates

Lights Out For Rebel Energy: Ofgem Races To Protect Customers

James Turnbull
11/04/2025

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Energy Shake-Up As 90,000 Customers Were Left In Limbo

In a stark reminder of the ongoing volatility in the UK energy sector, Rebel Energy has ceased trading, affecting approximately 90,000 customers. While market regulation has tightened significantly since the height of the energy crisis, this closure underlines the continued risks smaller suppliers face in a competitive and fluctuating energy landscape.

Rebel Energy's Journey

Rebel Energy was founded in 2017 with the mission to provide fairer, greener energy. Despite its ambitions, the company has joined the list of suppliers unable to withstand the pressures of a volatile market. The firm last filed accounts in 2023 and was serving tens of thousands of households and businesses at the time of its collapse.

Ofgem Steps In: How Customers Are Being Protected

Ofgem, has activated its Supplier of Last Resort (SoLR) safety net. This ensures that:

Energy supply continues uninterrupted.
Customer credit balances are protected.
Domestic customers are transferred under the protection of the energy price cap.

Ofgem has now officially announced British Gas to be the replacement supplier to Rebel’s 84,000 domestic and 6000 non-domestic customers. Rebel Energy Customers are advised to take the following steps in the meantime:

Wait to be contacted by British Gas.
Take a meter reading to ensure accurate billing once the transfer occurs.

According to the Director General for Markets at Ofgem, “Rebel Energy customers do not need to worry… they will not see any disruption to their energy supply, and any credit they may have on their accounts remains protected under Ofgem’s rules.” He further urged customers not to attempt switching suppliers until they are contacted by the new provider.

Behind The Breakdown: Why Rebel Energy Fell

The closure appears to stem from several contributing factors:

Soaring wholesale energy prices in early 2025 placed smaller suppliers under intense margin pressure.
Cost of living challenges meant many customers struggled to pay bills, affecting cash flow.
Regulatory action: Rebel Energy was reportedly subject to Ofgem disciplinary measures earlier this year over concerns about how it managed renewable energy subsidy funds.

These challenges culminated in an unsustainable operating environment for Rebel, despite the post-crisis regulatory improvements.

Staying Switched On: How To Navigate A Risky Energy Landscape

Rebel Energy’s closure is a sobering event for the UK energy market. It highlights that, despite improved oversight and tighter regulations, supplier failures are still a reality. The mechanisms now in place such as SoLR demonstrate a more mature market response than in previous years, but the burden remains on consumers and businesses to remain vigilant.

At BP Consulting, we continue to advocate for energy procurement strategies that balance cost efficiency with supplier stability. If you’re concerned about how this change affects your energy agreements or want advice on switching securely, get in touch with our expert consultants today.