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My Energy Supplier Has Gone Bust – What Should I Do?
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Tom Coyne
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With more than 20 energy suppliers going bust since the beginning of the energy crisis in August over 2 million domestic and commercial customers have been affected.
If your energy supply has been affected then don’t worry, we have compiled a guide to walk you through exactly what is about to happen and what you can do to protect yourself.
Immediate steps you need to take:
- Check your current balance and download any bills
- Take a photo of your meter reading
If you are in credit, your money is protected, and you’ll be paid back. If you were in debt to the old supplier, you’ll still have to pay the money back to the new supplier instead
Will my supply be turned off?
The first thing to remember is that just because your supplier has gone bust, your supply won’t be turned off. Ofgem has recently reminded customers, after the collapse of CNG, that “Customers need not worry, their supplies are secure and funds that domestic customers have paid into their accounts will be protected if they are in credit.”
Will any credit I have be honoured by my new supplier?
If you are in credit, your money is protected, and you’ll be paid back. However, if you were in debt to the old supplier, you’ll still have to pay the money back to the new supplier.
Who will provide me with my energy?
When a supplier goes bust, Ofgem will automatically transfer you to what is called a Supplier of Last Resort.
This has become a common occurrence during the recent energy crisis, with many suppliers no longer being able to trade in a commercially viable manner.
What does this mean for my tariff?
Whilst Ofgem can guarantee that you will receive a secure supply of gas and electricity, they cannot do the same for your tariff.
For example, if your current energy supplier has gone bust, you will be transferred to a supplier of last resort. However, the rates on your new tariff will almost definitely be different to your former tariff.
Instead, you will be placed on what is known as a “deemed rates” tariff.
What are deemed rates?
Typically, deemed rates are significantly more expensive than contractual rates. If your supplier has collapsed, you should be prepared to face a significant increase in your energy bills.
To make matters worse, deemed rates aren’t capped by Ofgem. This means that business consumers are significantly more at risk than household consumers, who are protected by an energy price cap, limiting the amount a supplier can charge them.
Can I Avoid Being Transferred to a Supplier of Last Resort?
Ofgem’s current advice has been to sit patiently until you have been transferred to a Supplier of Last Resort, we believe that you need to be proactive. By sitting patiently and trying to weather out the storm, you could be placed on a deemed rates tariff that is way over your business’ budget.
The collapse of your supplier means that you have no contract exit fees. This means that you are free to shop around and find a better new tariff.
How BP can help
With the energy crisis having a global impact, sitting patiently with your supplier of last resort on a deemed rates tariff is likely to cost you lots of money and leave you no better off than when your former supplier collapsed. This is where we come in.
At BP, we have a wealth of industry specialists, connections with the leading energy suppliers and expertise in alternative fuel sources meaning that we can find you the most competitive tariff and help you avoid costly deemed rates.
We will provide you with a dedicated account manager who will work with you to understand what package you need before providing you with a range of energy options. Contact BP for a free consultation today, let us provide your business shelter from the ongoing energy storm.