What happens if my UK energy supplier goes bust?

If your UK energy supplier goes bust, your gas and electricity supply will not be cut off. Ofgem will step in and appoint a new supplier under its Supplier of Last Resort (SoLR) process. Your account will be moved to the new supplier, and they will contact you about your new tariff and options. It is a good idea to take meter readings and download copies of your bills so that your final account can be accurately settled and you can easily compare new deals on the market.

Will my credit balance be protected if my energy supplier fails?

In most cases, domestic credit balances are protected when a UK energy supplier fails. Ofgem requires the new supplier taking over your account to honour domestic credit balances wherever possible. Commercial and business customers may have different levels of protection, so it is important to check the terms of your contract and follow updates from the appointed supplier and Ofgem. Always keep a record of your latest meter readings and account balance to help with any reconciliation.

Should I switch supplier as soon as I hear my current energy company is in trouble?

You do not need to panic switch if your supplier is reported to be in financial difficulty. Ofgem has a clear process to protect customers if a supplier stops trading, and any existing switch in progress will usually continue. However, it can be sensible to review your options and compare tariffs, especially if you are out of contract or on a standard variable rate. Using a specialist energy broker like Energy Plus can help you find a competitive, stable deal tailored to your usage and risk profile.

How do supplier mergers affect my energy tariff and contract?

When energy suppliers merge or one supplier buys another, your existing contract terms are usually honoured until the end of your agreed period. The brand name, billing system and customer service arrangements may change, and you may be moved to a new tariff after your current deal ends. You should receive clear communication about any changes and your right to switch. Monitoring the market and speaking to an independent adviser can help ensure that you do not roll onto an uncompetitive rate after a merger.

How can I protect my business from energy supplier failures or sudden price rises?

Businesses can reduce risk from supplier failures and volatile prices by locking in competitive fixed-term contracts, staggering contract end dates across multiple sites, and working with an experienced energy consultancy. Energy Plus monitors the UK energy market, tracks supplier stability and negotiates business energy contracts designed to balance price and risk. We can help you plan renewals early, avoid out-of-contract rates and secure deals with reputable suppliers that match your organisation's risk appetite.

Can Energy Plus help me switch if my current supplier has gone bust or merged?

Yes. If your supplier has gone bust or merged and you are unsure about your options, Energy Plus can review your current situation, explain the implications of Ofgem's process, and identify competitive alternatives. Once your account has been moved to the new supplier and any restrictions on switching have been lifted, we can compare the market on your behalf and handle the switching process from start to finish to make sure you move to a contract that suits your needs and budget.

News on UK Home Energy Suppliers Going Bust or Merging

Stay on top of the latest changes in the UK domestic energy market so you know exactly what to do if your home gas or electricity supplier collapses, is taken over, or merges with another provider.

Your quick guide if your home energy supplier fails

When a UK energy supplier goes bust, thousands of households are left worrying about their gas and electricity supply, their credit balance, and whether they will pay more. This page keeps you informed and explains, in plain English, how Ofgem protects you, what will happen to your account, and how to find a better home energy deal when the market allows.

We track supplier failures, mergers and acquisitions across the domestic market, including big names and smaller challenger providers. Whenever there is a major change that could affect households, we update this page with clear steps and impartial guidance.

Fast facts if your supplier goes bust

Your energy will not be cut off.
Ofgem will move you to a new supplier automatically.
Your credit balance is usually protected.
You are free to switch once your new supplier is in place.

Tip: Take a meter reading and download recent bills as soon as you hear your supplier has collapsed.

Latest home energy supplier changes in the UK

The UK domestic energy market continues to change, with suppliers leaving the market, consolidating, or merging. Price caps, wholesale market volatility and tighter financial rules have all contributed to a series of failures in recent years. While the names of individual suppliers will change over time, the process that protects you as a home customer stays broadly the same.

On this page we summarise the main scenarios that affect UK households:

Supplier going bust: your provider stops trading and Ofgem appoints a new supplier using its Supplier of Last Resort process.
Supplier being taken over: one supplier buys another, but your energy supply continues and your account is migrated.
Supplier merger: two companies join forces under one brand, which can lead to new tariffs and account changes for customers.

We recommend bookmarking this page if you want to keep up with the latest news on UK home energy suppliers going bust or merging, and what that means for your household bills.

What happens if my domestic energy supplier goes bust?

If your home energy supplier stops trading, it can feel alarming, but there is a clear process designed to protect you. Here is what you can expect in simple steps:

Ofgem announces the failure. Your supplier will usually post a message on its website confirming it has ceased trading, and Ofgem will publish an update.
Do not switch straight away. Ofgem advises waiting until you are moved to a new supplier so that your balance and account details are properly handled.
Record your meter readings. Take clear gas and electricity meter readings, and a photo if possible. Keep a copy of your latest bill and statements.
You are moved to a Supplier of Last Resort. Ofgem appoints a new supplier to take over your supply. This usually happens within a few days.
Your new supplier contacts you. They will tell you when your account has been transferred and what temporary tariff you are on.
Check your options. Once your account is fully set up, you are free to compare prices and switch to a different tariff or supplier if you wish.

Throughout this process your home energy will continue to flow as normal. You do not need to change meters, wiring or gas pipes, and no engineer visit is normally required.

Your rights as a home energy customer

Continuous gas and electricity supply, even if your old supplier fails.
Protection of domestic credit balances with most suppliers.
Ability to switch to another provider once your new account is set up.
Access to the Ofgem Energy Price Cap on standard variable tariffs.
Support for vulnerable customers, including priority services.

If you are on a prepayment meter and your supplier fails, your top-up arrangements may change. Your new supplier will explain how to continue topping up safely.

What if my supplier is taken over or merges?

Not every change in the energy market is a collapse. Sometimes, a larger energy company buys another, or two suppliers merge into a single brand. In these cases your supply remains continuous and there is usually more notice.

Typical changes when a supplier merges or is acquired include:

New branding on your bills and online account.
Changes to your tariff name or structure.
Updated terms and conditions and direct debit details.
New online portal or app login details.

You will normally receive several notifications by email or post before and after the change. You retain the right to switch to another supplier if you are unhappy with the new arrangement.

How to respond to a merger or takeover

Read the communication from your supplier carefully.
Save a copy of your last bill, showing your current tariff and rates.
Check if your contract end date or exit fees are changing.
Compare the new rates to the market once switching is broadly available.
Decide whether to stay, switch tariff, or move to a new supplier.

If you are moved to a more expensive standard tariff, you may be able to save money by switching once you have reviewed the options.

How supplier failures affect your home energy bills

When a supplier collapses, the new supplier appointed by Ofgem will usually place you on a deemed contract or standard variable tariff. This tariff must comply with the Ofgem price cap, but it may still be more expensive than the deal you were on with your previous supplier.

In a volatile market, fixed-rate deals may be limited or temporarily poor value compared with the price cap. Over time, as conditions stabilise, more competitive tariffs tend to return. Staying informed about the wider market is the best way to make a confident decision about when to switch.

Key points to remember:

Your old fixed deal usually ends when your supplier goes bust.
The new supplier cannot charge exit fees on your deemed contract.
You can switch as soon as your new supplier has fully set up your account.
Waiting for the right time to fix can sometimes save money overall.

Smart meters and supplier changes

Modern SMETS2 smart meters usually stay smart when you are moved to a new supplier. Older SMETS1 meters may temporarily lose some smart functions but should still record your usage like a traditional meter.

Your new supplier will tell you if they can read your meter remotely, or if you need to provide manual readings for a period of time.

Practical checklist if your supplier goes bust

Use this simple checklist to protect yourself when you hear that your home energy supplier has stopped trading:

Take and save up-to-date meter readings (and photos if possible).
Download or print your last 12 months of bills and statements.
Note your current direct debit amount and payment date.
Make a record of any credit balance on your account.
Keep an eye on announcements from Ofgem and your new supplier.
Avoid cancelling your direct debit until your new supplier gives clear instructions.
Once your account has moved, compare tariffs before deciding to fix or stay on a variable rate.

Support for vulnerable and low-income households

If you rely on medical equipment, are of pension age, disabled, or have young children, you may qualify for priority services or additional support from your supplier.

When your supplier changes, check that:

You remain on the Priority Services Register.
You are receiving any discounts you are entitled to, such as the Warm Home Discount when it is available.
Your new supplier has up-to-date contact details and knows about any special requirements.

Want to know when it is a good time to switch?

Switching at the wrong time can lock you into a tariff that costs more than you need to pay. Share a few details and we will help you understand when and how to move to a better home energy deal once the market is ready.

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Frequently asked questions

Will my energy be cut off if my supplier goes bust?

No. Your gas and electricity will continue to flow as normal. Ofgem ensures that another supplier takes over your supply.

What happens to my credit balance?

Most domestic credit balances are protected. Once your new supplier has taken over, they will confirm how and when any credit will be applied or refunded.

Can I choose the new supplier?

Ofgem selects the Supplier of Last Resort based on several criteria. You cannot choose this supplier, but after the transfer is complete you are free to switch to any other provider.

Should I cancel my direct debit?

It is usually best to wait until your new supplier contacts you. Cancelling too soon can delay refunds or create confusion about payments.

Will I pay more after a supplier failure?

You may temporarily move onto a standard variable tariff with your new supplier. This is subject to the price cap but can still be higher than your previous fixed deal. Once your account is fully set up, you can compare and switch.

What if I have a prepayment meter?

You should still be able to top up, but your new supplier may change your top-up card or key. Follow the instructions they send and keep any receipts until the transition is complete.

How do I stay informed about supplier news?

Check Ofgem updates, consumer news and return to this page for plain-English explanations. You can also sign up above to receive tailored guidance for your home.

Can I switch to a green tariff after a merger?

Yes, providing suitable tariffs are available. Once your account is stable, review the new supplier's green options or compare across the wider market.

Stay ahead of changes to UK home energy suppliers

Supplier failures and mergers do not have to leave you confused or out of pocket. Keep this page bookmarked, check back for updates, and use our guidance to decide when to switch and how to protect your household budget.

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Updated on 7 Dec 2025