What do I do if my commercial energy supplier goes out of business?
The Coronavirus pandemic has been difficult for everyone. Both of the national lockdowns forced the temporary closure of many businesses, and some are still yet to reopen.
Without any income, these businesses may struggle to pay their bills, and so their energy suppliers can also come under financial pressure as they struggle to collect the money that they are owed.
But if your energy supplier goes out of business, what does it mean for your business?
Although unlikely, it can seem a little worrying but if the worst does happen the industry regulator, OFGEM, has procedures in place to ensure as little change as possible.
Will my supply be cut off?
No. Your supply won’t be cut off. OFGEM’s safety net process means they will pass on your supply to an alternative supplier of last resort (SoLR). Suppliers are asked to bid to replace failed firms, so OFGEM try to get the best possible deal for the customer in the circumstances.
When will I know who it is?
OFGEM will make a decision as soon as possible (usually within a few days) and announce it on their website.
Do I need to do anything?
If this happens to you, sit tight and wait until your new supplier contacts you. Don’t cancel your direct debit. We do advise you to take a meter reading as soon as possible, as your new supplier will need this.
Will my bills go up?
With commercial supply, your contract will be void and your new supplier will put you onto an Out Of Contract rate, which may result in your bills increasing until a new tariff is agreed.
I am in credit with my old supplier, what happens to my money?
Your new supplier will pay back the credit owed to you and will contact you to explain how this will work.
I had debt on my account, what happens to that?
This depends on what your new supplier has agreed. You will need to pay back the debt to your new supplier if they arrange to take on customer debts to your old supplier. If not, your old supplier’s administrators may contact you to set up a payment plan.