Business energy supplier gone bust: what to do (UK)
If your business energy supplier has gone bust, you’ll normally be moved automatically to a new supplier (a “Supplier of Last Resort”) so your electricity or gas should stay on. This guide explains what happens next, what to check on your first bill, and how to regain control with a compliant business comparison.
- Step-by-step actions for the first 24–72 hours
- What happens to your contract, credit balance and direct debit
- When you can switch — and how to avoid common billing pitfalls
Information is UK-focused and business-specific. Prices and rules can vary by meter type, contract status and supplier processes.
Fast answer: business energy supplier gone bust what to do UK
In most UK cases, if your business energy supplier has gone bust you will be automatically moved to a new supplier (a Supplier of Last Resort), so your supply should not be cut off. Take meter readings immediately, keep paying your current bills until told otherwise, wait for the new supplier’s welcome letter, then review rates and consider switching once your account is live.
Do now (10 minutes)
- Take dated meter photos (electricity + gas).
- Download recent bills and your contract if you have it.
- Check if you have a smart meter and note the MPAN/MPRN.
Do next (24–72 hours)
- Watch for Ofgem updates and the new supplier notice.
- Don’t cancel your direct debit unless advised.
- Prepare to validate opening readings with the new supplier.
Avoid
- Guessing readings (creates billing disputes).
- Switching before your new account is set up (can delay billing).
- Assuming credit refunds are immediate.
What happens when a business energy supplier goes bust?
When a supplier stops trading, Ofgem appoints a Supplier of Last Resort (SoLR) to take over the supply for affected meters. Your business premises should continue to receive energy, but the administrative side (account setup, opening reads, billing, credit balances) can take time.
Your priority: protect your opening meter readings
Most disputes after a supplier failure come down to the opening read used by the new supplier. A clear photo with a date (and the serial number visible if possible) is the simplest way to support your position.
Step-by-step (first week)
- Take readings immediately (electricity day/night if you have an Economy 7/2-rate meter; gas in m³ or ft³). Keep photos.
- Save evidence: last 3–6 bills, contract emails, direct debit confirmations, and any credit balance shown.
- Check Ofgem’s announcement of the SoLR and any instructions for customers.
- Wait for the new supplier to contact you with an account number and how to submit readings.
- Keep paying your existing bills unless told otherwise by the administrator/new supplier (late payment can create complications).
- Verify your first SoLR bill: opening reading, dates, rates, standing charge, VAT, and estimated vs actual reads.
- Decide your next move: stay on the deemed/temporary rates, negotiate, or switch once the account is live.
Can you switch straight away?
Often you can switch, but it’s usually smoother to wait until the new supplier has created your account and confirmed the opening read. Switching too early can lead to delayed bills or mismatched reads across suppliers, especially with multi-site portfolios and half-hourly (HH) meters.
Regain control: compare business energy
If you’ve been moved to a new supplier after a collapse, rates can be higher than a negotiated deal. Use the form to request a whole-of-market comparison and a clear explanation of contract terms before you commit.
Your options after a supplier failure (compared)
Most businesses end up on temporary “deemed” or rollover terms with the SoLR while accounts are created. The best choice depends on urgency, contract status, and meter type (standard vs half-hourly).
| Option | Best for | Trade-offs | What to check |
|---|---|---|---|
| Stay with the SoLR (temporary terms) | You need continuity and time to stabilise billing. | Rates may be higher than a negotiated contract; terms can be short. | Opening read, VAT, standing charge, billing frequency, payment method. |
| Switch once account is live | You want a fixed price/term and predictable budgeting. | May require credit check; timing matters to avoid read disputes. | Any exit fees, contract end date (if any), and whether you’re on deemed rates. |
| Negotiate with SoLR (if offered) | Larger usage, multi-sites, or HH meters. | Not always available; may still be less competitive than the market. | Contract length, pass-through charges, read/settlement terms. |
| Do nothing (not recommended) | Only if you are actively resolving an account/billing issue. | You may remain on costly default terms longer than needed. | Whether you’ve been billed on estimates; any arrears building up. |
Decision checklist (who it suits / who it doesn’t)
Switching soon suits you if…
- Your new SoLR account is set up and you can submit opening reads.
- You need price certainty for cashflow or tenders.
- You can provide basic business details and agree a contract term.
- You’re happy to review pass-through charges and payment terms.
Waiting a little suits you if…
- You’re disputing the opening read or have missing bills.
- You have a complex setup (HH, multi-site, landlord supplies, sub-meters).
- Your previous supplier balance/credit is unclear.
- You haven’t received SoLR terms yet and need them in writing.
Costs, exclusions and common pitfalls
After a supplier collapse, the risk isn’t usually losing supply — it’s billing accuracy, cashflow strain from higher default rates, and avoidable disputes around opening reads and contract status.
1) Opening read mismatches
If the SoLR uses an estimated opening read, you can be over/under-billed. A dated photo and prompt submission reduces hassle. For multi-rate meters, provide each register (e.g., day/night).
2) Direct debit confusion
Cancelling a direct debit can trigger missed payments and collections activity later. Keep evidence of what you paid and wait for written instructions from the administrator/new supplier.
3) Credit balances and refunds
Credit on your old account may be handled through the administrator’s process and can take time. Keep statements and bills that show the balance; don’t assume it will automatically offset new bills.
Two realistic scenarios (with numbers)
Scenario A: small café on deemed electricity
Assumptions (illustrative): 12,000 kWh/year electricity, single-rate meter, standing charge 60p/day, VAT 20%.
- If deemed unit rate is 40p/kWh
- Annual energy: 12,000 × £0.40 = £4,800 (ex VAT)
- Standing charge
- 365 × £0.60 = £219 (ex VAT)
- Estimated total (ex VAT)
- £5,019/year (VAT and other charges may apply depending on tariff structure)
Scenario B: light industrial unit with gas + electric
Assumptions (illustrative): Electricity 45,000 kWh/year at 30p/kWh; Gas 120,000 kWh/year at 8p/kWh; standing charges electricity 70p/day, gas 50p/day (ex VAT).
- Estimated annual electricity (ex VAT)
- 45,000 × £0.30 + (365 × £0.70) = £13,500 + £256 = £13,756
- Estimated annual gas (ex VAT)
- 120,000 × £0.08 + (365 × £0.50) = £9,600 + £183 = £9,783
- Estimated combined total (ex VAT)
- £23,539/year
Common exclusions and edge cases
Half-hourly (HH) electricity
HH sites can face more complex settlement and billing. Ask whether prices are all-inclusive or include pass-through charges (e.g., DUoS/TNUoS, capacity, RO/FIT where applicable) and how they’re treated.
Landlord supply / sub-metering
If you don’t hold the supply contract (landlord or managing agent does), your immediate action is to request confirmation of who is now responsible and what you should pay, in writing.
Erroneous transfer risk
In periods of supplier change, meters can be mistakenly switched. Keep your MPAN/MPRN handy and challenge unexpected “welcome” letters from suppliers you didn’t choose.
FAQs
Will my business energy be cut off if my supplier goes bust?
Normally no. In the UK, Ofgem appoints a Supplier of Last Resort to take over supply, so your electricity/gas should continue. The bigger issue is admin and billing — take meter readings immediately and keep records.
Do I need to contact Ofgem or my network operator?
You usually don’t need to contact your network operator. Monitor Ofgem’s updates and wait for the new supplier’s welcome letter. If you have a power cut or smell gas, use the emergency routes on GOV.UK rather than your supplier.
What happens to my business energy contract if my supplier goes bust?
Your old contract can’t continue with a supplier that has stopped trading. You’ll typically be supplied on deemed or temporary terms by the Supplier of Last Resort until a new contract is agreed. Keep any contract documents in case they’re needed for billing disputes.
Should I cancel my direct debit if my business energy supplier goes bust?
Not unless you’re advised in writing. Cancelling can cause missed payments and make reconciliation harder later. Keep bank records and invoices. If you believe you’ve overpaid, raise it with the administrator/new supplier once they provide the official process.
What happens to credit on my account or an outstanding refund?
Credit balances are normally handled through the insolvency/administrator process and may not be refunded quickly. Keep copies of bills showing your credit. Where applicable, the SoLR process may take account of balances, but it’s not instant and can vary by case.
When can I switch after a Supplier of Last Resort transfer?
You can often switch once your new SoLR account is created and your opening reading is agreed. To reduce delays, wait for the welcome pack/account number, submit your opening reads promptly, then request quotes and compare contract terms (including pass-through charges for HH sites).
How do I find my MPAN or MPRN if I can’t access my old account?
Your MPAN (electricity) is often shown on previous bills; your MPRN is shown on gas bills. If you can’t find them, you can ask the incoming supplier once they contact you, or use official lookup routes where available (details are commonly referenced by Citizens Advice and Ofgem guidance).
Do microbusinesses get extra protection if a supplier goes bust?
Some businesses classed as microbusinesses can have additional protections around contract terms and dispute routes, but it’s not the same as domestic rules. If you think you qualify, raise it with the new supplier and keep written records of all communications.
Trust, methodology and sources
Page ownership
- Written by:
- EnergyPlus Editorial Team
- Reviewed by:
- Energy Specialist
- Last updated:
- June 2026
How we assess this (and limitations)
This guide reflects the UK Supplier of Last Resort process and common business energy billing practices. We prioritise steps that reduce disputes (meter readings, evidence capture, timing of switching) and that are consistent with regulator and advice-body guidance.
- Assumptions: supply continuity is maintained; the SoLR contacts customers; businesses can provide reads and business details.
- What varies: deemed rates, standing charges, credit/refund timelines, credit checks, and HH settlement details by supplier and meter profile.
- Numbers shown: scenarios are illustrative estimates for budgeting only; they exclude potential non-energy pass-throughs where relevant and assume simple unit-rate + standing charge structures.
Primary sources (UK)
- Ofgem (UK energy regulator) guidance and announcements
- Citizens Advice: energy supply problems and supplier issues
- GOV.UK: emergencies and official public guidance
We link to high-authority UK sources for the regulatory process. Supplier-specific terms, business credit handling and tariff structures can differ and may change.
Ready to move off temporary rates?
Request a whole-of-market business energy comparison and get clear, written options for your meter type and usage — with terms explained before you commit.
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