What happens to my credit balance if my energy supplier goes bust UK?

Ofgem's supplier of last resort process protects credit balances. The new supplier taking over your account should honour any credit you had (including for Warm Home Discount if awarded). Keep records of your balance before the switch happens.

Will my energy supply be cut off if my supplier fails?

No, your gas and electricity supply will not be interrupted. Ofgem appoints a new supplier to take over your account automatically. You don't need to do anything — you won't be cut off.

Can I switch away after my supplier fails?

Yes, once your new supplier is confirmed, you're free to switch to any other provider if you prefer. You won't be locked into a contract with the appointed supplier. Compare deals and switch if you find a better tariff.

What about my smart meter if my supplier fails?

Smart meters often lose smart functionality when you switch supplier, reverting to 'dumb' mode where you'll need to submit manual readings. The new supplier may be able to restore smart functionality over time.

Energy Supplier Goes Bust UK — What Happens and What to Do | PocketWise

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

Immediately

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

When New Supplier Contacts You

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

Extra Protections

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

Who to Contact

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

Contact for New Supplier

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.