Energy Bills and Switching Suppliers UK 2026 — Complete GuideEnergy Supplier Goes Bust UK — What Happens and What to Do
What happens when your energy supplier fails in the UK. Your rights, how switching works, credit balance protection, and what to do step by step.
If you are comparing tariffs, switching options, and bill-control tactics, start with the Energy Bills and Switching Hub for the full decision framework.
Energy supplier failures happen, but your supply is protected. Here’s what to expect and what to do.
What Happens When a Supplier Fails
The Process
| Step | What Happens |
|---|
| 1 | Supplier stops trading |
| 2 | Ofgem steps in immediately |
| 3 | Supplier of Last Resort (SoLR) appointed |
| 4 | Your account transferred to new supplier |
| 5 | You continue using gas/electricity normally |
Key Protections
| Protection | Details |
|---|
| Supply continues | Never cut off |
| Credit balance | Usually protected |
| Automatic transfer | You don’t need to apply |
| No gap in service | Seamless transition |
Your Rights
What’s Protected
| Right | Status |
|---|
| Continuous supply | Guaranteed |
| Credit balance | Protected (claim from new supplier) |
| Warm Home Discount | Transferred if awarded |
| Feed-in Tariff payments | Protected |
| Smart Export Guarantee | May need to re-apply |
| Fixed price tariff | Lost — moved to new supplier’s terms |
What’s Not Protected
| Item | Status |
|---|
| Your old tariff rate | Moved to new supplier’s rate |
| Loyalty discounts | Lost |
| Special arrangements | May need to renegotiate |
Step by Step: What to Do
| Action | Why |
|---|
| Do nothing yet | Wait for official communication |
| Don’t panic | Supply won’t be cut |
| Don’t try to switch | Can’t until transfer complete |
| Take meter readings | Evidence of usage at switchover |
Within Days
| Action | Why |
|---|
| Note your credit balance | Before accounts close |
| Screenshot your account | Proof of balance |
| Record meter readings | With photos/timestamps |
| Wait for contact | From appointed supplier |
| Action | Why |
|---|
| Check tariff offered | May be expensive |
| Provide meter readings | Accurate billing |
| Verify credit balance | Ensure it’s transferred |
| Set up Direct Debit | If required |
| Consider switching | Once transfer complete |
Credit Balance Protection
How It Works
| Situation | Protection |
|---|
| Credit on account | Claimed through new supplier |
| Direct Debit payments | May be refunded for unused |
| Overpayment | Should be credited |
What to Do
| Step | Action |
|---|
| 1 | Record your current balance (screenshot) |
| 2 | Contact new supplier if not credited |
| 3 | Complain to Ombudsman if not resolved |
If Your Credit Isn’t Transferred
| Step | Action |
|---|
| 1 | Contact new supplier in writing |
| 2 | Provide evidence of balance |
| 3 | Allow 8 weeks to resolve |
| 4 | Escalate to Energy Ombudsman |
Your New Tariff
What to Expect
| Factor | Typical |
|---|
| Initial tariff | Supplier’s standard variable |
| Price | May be higher than price cap |
| Contract | No fixed term |
| Exit fees | Usually none |
Should You Switch?
| Situation | Recommendation |
|---|
| New tariff is expensive | Compare and switch |
| Happy with rate | Can stay |
| Want security | Consider fixed deal |
How to Compare and Switch
| Step | Action |
|---|
| 1 | Wait until transfer complete |
| 2 | Get annual usage from new supplier |
| 3 | Compare using Ofgem-accredited sites |
| 4 | Switch if better deal available |
| 5 | No exit fees from standard tariff |
Smart Meters
Common Issues After Supplier Failure
| Issue | What Happens |
|---|
| Loses smart functionality | Reverts to “dumb” mode |
| Need manual readings | Until fixed |
| May take months | To restore smart function |
| Prepayment smart | May need intervention |
What to Do
| Action | Details |
|---|
| Submit manual readings | Monthly if possible |
| Ask new supplier | About smart meter compatibility |
| Be patient | Can take time to restore |
| If prepayment issues | Contact new supplier urgently |
Warm Home Discount
If You Were Awarded the Discount
| Situation | What Happens |
|---|
| Already credited | Keep it — your money |
| Award confirmed, not yet paid | Should be honoured |
| Application in progress | May need to reapply |
How to Check
| Step | Action |
|---|
| 1 | Contact new supplier |
| 2 | Explain WHD status |
| 3 | Provide evidence if possible |
| 4 | Request transfer of entitlement |
Prepayment Meters
| Situation | Action |
|---|
| Topped up credit | Protected |
| Emergency credit | Usually honoured |
| Can’t top up | Contact new supplier immediately |
Urgent Issues
| Problem | What to Do |
|---|
| Can’t add credit | Call new supplier helpline |
| About to go off supply | Emergency number should be provided |
| Lost smart functionality | May need meter visit |
Key Organisations
| Organisation | When to Contact |
|---|
| Your new supplier | First point of contact |
| Ofgem | General guidance |
| Energy Ombudsman | Complaints after 8 weeks |
| Citizens Advice | Independent advice |
| Details | Usually |
|---|
| Letter/email | Sent within days |
| Account setup | Automatic |
| Website | New account portal |
| Phone | Customer service number provided |
Timeline
Typical Process
| Timeframe | What Happens |
|---|
| Day 1 | Supplier stops trading |
| Day 1-3 | Ofgem appoints new supplier |
| Day 3-7 | Public announcement |
| Week 1-2 | New supplier contacts you |
| Week 2-4 | Account fully set up |
| Ongoing | Normal service with new supplier |
Warning Signs Before Failure
| Sign | Meaning |
|---|
| Price increases | Financial pressure |
| Customer service issues | Cost cutting |
| Media speculation | Investigate |
| Unusual communication | Something changing |
Complaining
If Things Go Wrong
| Issue | Process |
|---|
| Credit balance not transferred | Complain to new supplier |
| Wrong meter readings | Provide evidence |
| Billing errors | Dispute in writing |
| Not resolved in 8 weeks | Energy Ombudsman |
Energy Ombudsman
| Feature | Details |
|---|
| Free to use | No cost to you |
| Decisions | Binding on supplier |
| Time limit | After 8 weeks or deadlock |
| Compensation | Can award if appropriate |
Summary Checklist
| When | Action |
|---|
| Immediately | Take meter readings, screenshot balances |
| Wait | Don’t try to switch until transfer complete |
| When contacted | Check new tariff, verify credits transferred |
| After setup | Compare energy deals |
| If issues | Complain to supplier, then Ombudsman |
Your energy supply is protected when a supplier fails. The key is to document everything, wait for the official transfer, and then review your options with the new supplier.
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