What to do if my energy supplier has gone bust

Following the energy crisis of 2021 and 2022, the UK domestic energy market was in turmoil, with energy suppliers going bust on the back of soaring wholesale gas and electricity prices whilst the energy regulator - Ofgem, protected consumers and prevented energy suppliers from passing on the full impact of these rises. This was achieved via the 'Energy Price Cap', which came into effect back in 2019. Since then, whilst Ofgem worked to drive competition in the market by removing barriers to entry, we have seen more than 30 supplies go bust, impacting thousands of customers at a time.

The latest energy supplier to go bust is Rebel Energy on 1st April 2025, impacting 90,000 customers.

NOTE: As of 7th April 2025, Ofgem has confirmed that these customers will move to British Gas. 

If your energy supplier does go bust, there is a process to ensure your energy supply is not disrupted and that you can continue cooking, heating your home, and using hot water. That process is called the "Supplier of Last Result" (also known as SoLR - pronounced "So-lar"). This mechanism, operated by Ofgem, ensures consumers' supply of gas and electricity is maintained, that their credit balances are repaid and that the customer is switched to a new energy supplier as soon as possible where they can freely switch to a more competitive tariff if they wish to do so without facing any form of financial penalty imposed through an "exit fee". 

What happens if my energy supplier goes under?

Ofgem, the Office of Gas and Electricity Markets, is an independent regulatory authority, ensuring that energy is made available to consumers at the lowest possible cost and that suppliers treat consumers fairly - including protecting vulnerable individuals. Although they work with the government, they are not part of the government, which means any advice that's given, is purely in the interests of the consumer (so they say!).

Ofgem also ensures your energy supply isn't interrupted if your supplier goes under. They do this by choosing a new supplier for you as an interim solution. Usually your existing tariff won't continue and you'll begin to pay the new tariff specified by your new energy supplier. Depending on the supplier you're allocated, they may honour your previous tariff but it is most likely you will be assigned a "deemed contract".

This will be at the same level as the energy suppliers' "Standard Variable" tariff. Historically, these tariffs were notoriously the most expensive on the market, and it was an Ofgem view that here is where energy suppliers were "profiteering" on the most vulnerable. Now, with a more competitive energy market returning, these tariffs can be almost £300 a year more expensive than cheaper energy tariffs. 

What should I do if my energy supplier goes bust?

• Do NOT panic. Ofgem will handle the process.
• Do NOT switch to another supplier until you know your new supplier.
• Take a meter reading. 
• Take a copy of your current balance and save it somewhere safe to show if your account is in credit. Do this even if your supplier hasn't yet gone bust. You never know.
• You can cancel any existing direct debits to the current supplier if you wish, but this is not essential as Ofgem will ensure any credit is repaid.

Will my power won't be cut off?

No. Ofgem will be aware of your energy company going out of business and will move you to a new supplier as soon as possible, but within that time period, your power won't be cut off. You should take a meter reading as soon as possible once you're aware your energy supplier will no longer be trading, and also ensure you capture a view as to the balance on your energy account, i.e. are you in credit or debt, and by how much?

NOTE: This is vital as suppliers going bust may shut down websites and apps so ensure you do this NOW before anything happens that may cause further issues down the line. 

In most circumstances, it will only take a few days for a new supplier to be appointed, but you need to ensure you wait until this has happened instead of trying to find a new supplier yourself. If you're unhappy with the new supplier's tariff, once the switch has taken place, you're free to switch energy supplier to one who is more competitively priced or who you prefer to be with. As mentioned above, customers can save almost £300 a year on average by switching to a cheaper energy tariff so be sure to run an energy comparison. 

Don't worry if you have a smart meter, either. Although your new supplier may not be able to use the smart meter you were provided with, they will still take regular meter readings to ensure your energy usage is being measured accurately. Once you're settled in with your new supplier or you choose to switch to another one, your smart meter will work again in the future.

If you're on a prepayment meter, any credit you have already for your energy supply will be protected by Ofgem and can transfer with you to the new supplier. Your new supplier will then provide details on how to add more credit to your meter, if necessary.

What about cancelling my direct debits?

You don't need to worry about this - simply leave everything to Ofgem, that's what they're there for. If you have any outstanding credit or debt, this will be sorted through the new supplier that Ofgem allocates to you.

If you do have credit, this will transfer to your new supplier and you'll be paid back what you're owed. If you owe money, again, this will come with you to your new supplier and a payment plan can be discussed in order to reduce this debt. However, some suppliers may not arrange to take on your previous supplier's debt, which means you may still have to pay this back to your old supplier. If this situation occurs, everything will be explained to you by your new supplier.

If you've already cancelled your direct debits, fear not. Your newly appointed Ofgem supplier will contact you directly and get you set up on their accounts system, so you don't have a break in your energy supply.