What to do if your energy supplier goes bust
Nine energy suppliers went bust in September with customers switched by Ofgem to new providers. - Credit: PA
Nine firms have gone bust due to energy price increases, with Uswitch.com advising customers to take meter readings if their supplier stops trading.
In September, Avro Energy, Green, PFP Energy, MoneyPlus Energy, Igloo Energy, Symbio Energy, ENSTROGA, Utility Point and People's Energy fell foul of high wholesale gas prices.
When an energy supplier goes out of business, regulator Ofgem appoints a new one - known as the supplier of last resort - for affected customers.
Neither your gas nor electricity supply can be cut off when a supplier stops trading.
Ofgem recently appointed E.ON Next to supply ENSTROGA, Igloo Energy and Symbio Energy’s 233,000 customers.
Uswitch.com energy policy expert Justina Miltienyte said we may not have seen the end to suppliers going bust. - Credit: Uswitch.com
Justina Miltienyte, energy policy expert at Uswitch.com, said: "The difficult wholesale energy market situation brings more bad news every week.
"In total, 233,000 more customers will be joining the almost two million who have already been displaced by their energy provider this year and we may not have seen the end to this situation."
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She added that with headlines getting worse, many customers will be worried, but those impacted can be reassured their energy supply will continue with normal and credit balances protected.
"It’s important all affected customers hold tight for now while they are moved to a new supplier appointed by Ofgem," she said.
A cap on energy prices increased for 15 million customers from October 1.
People on default tariffs paying by direct debit saw an increase of £139 from £1,138 to £1,277.
Prepayment customers were hit with a £153 hike from £1,156 to £1,309.
The price cap increase has been driven by a more than 50 per cent rise in energy costs over six months, according to Ofgem.
Gas prices have hit a record high with demand soaring as economies emerge from lockdown.
Uswitch.com has advised bill-payers to wait for the dust to settle on the situation before weighing up whether they can find better deals elsewhere.
It advises customers to note meter readings now and again once contacted by their new supplier to make sure bills are accurate.
The price comparison website has published tips on what to do if your energy supplier goes out of business.
