As of February 2021, two energy suppliers in the United Kingdom have already gone bust. This has forced more than 400,000 British households to seek alternative utility suppliers. For most consumers, news of energy suppliers going bust can be worrisome. What if their energy supplier will be the next to go out of business? Who will supply their energy when that happens?
In this Bill’s Utility Hub guide, we will explain what you should do if your UK energy supplier goes bust, as well as list down the companies that have left the business in the past year.
Will Your Energy Supplier Go Bust in 2021?
In 2020, four energy suppliers in the UK went out of business. This forced more than four million customers to involuntarily switch energy suppliers and to be put on tariffs that they never choose.
While switching energy suppliers for corporate business isn’t the most complicated task, it can be stressful for many customers. Aside from worrying about the money that they had on account with their previous energy supplier, customers have to deal with billing issues, poor customer service, and so on.
Four million households may not seem like a lot when compared to Great Britain’s total number of households, but consider this — if it happened to them, it may happen to you.
So, will your energy supplier go bust in 2021? There’s no sure-fire answer, but considering that many of the industry players went out of business last year, saying that it’s unlikely wouldn’t be the most credible statement.
What Should You Do if Your Energy Supplier Goes Bust?
If your energy supplier goes out of business, you will always be protected by the Ofgem (Office of Gas and Electricity Markets) safety net.
Ofgem will ensure that affected customers are transferred to a new energy supplier to avoid disruptions in their energy supply. It’s important to note that you will not be able to select an energy supplier of your choice. Ofgem will instead look for a new supplier on your behalf. When this happens, your tariff from your old utility supplier will end, and you will be automatically placed under a “special” contract with your new utility company.
It’s important to note that you will not be able to select an energy supplier of your choice. Ofgem will instead look for a new supplier on your behalf. When this happens, your tariff from your old utility supplier will end, and you will be automatically placed under a “special” contract with your new utility company.
Important Things to Do if Your Energy Supplier Goes Bust:
– Take a reading of your meter.
– Wait for the alternative energy supplier to contact you.
– Research your new energy supplier and make sure that there aren’t any negative reviews about them online.
– Find a way to switch utility online if you do not like the new energy supplier that was selected by Ofgem.
-Research how you can retrieve the money on account from your previous energy supplier.
If the alternative energy supplier offers you a bad deal, you must understand that you do not have to take it. You should always compare utility prices to check how their offer measures up — especially if the new utility company has earned an unscrupulous reputation.
Why Should You Take a Meter Reading?
The meter reading will be the basis for calculating the amount that your previous energy supplier may owe you, or that you may owe them. If they owe you money (i.e., you have credit with them), they will need to know how much they should pay.
Similarly, if you owe them money, you need to be certain that you don’t pay them more than what is necessary.
Has Your Energy Supplier Gone Bust?
Below, we will round up some of the energy suppliers in the UK that have gone out of business from 2020 to 2021.
#1 Green Network Energy
Green Network Energy went out of business in January of 2021. The utility company had around 360,000 customers who were transferred over to EDF Energy.
The customers were moved onto 6 tariffs called the Welcome GNE Variable and the GNE Variable Prepay — a significant reduction compared to Green Network Energy’s 109 tariffs. EDF Energy’s tariffs come at fixed prices that extend until September of 2021. On average, its customers pay approximately £796 to £1,042 on energy bills.
#2 Simplicity Energy
Another energy supplier in the UK that went bust in January was Simplicity Energy.
The company had around 50,000 customer accounts. These customers have been transferred to British Gas Evolve under British Gas. They were placed under a single tariff called the ‘Simplicity Promise’. The problem with it, however, is that it is quite pricey. Although it does come with 100% renewable electricity, customers are expected to pay around £1,041 a year.
#3 Yorkshire Energy
Yorkshire Energy went bust in December of 2020.
The utility supplier had around 74,000 customer accounts that were transferred to Scottish Power. While the switching process started on December 6th, many customers have complained that they still have not received their credit refunds. Other customers have also reported that they have not been contacted by their new energy supplier and that they haven’t gotten their closing bill from the supplier-gone-bust.
Other Energy Suppliers That Have Gone Bust
Below are the UK energy suppliers that have gone bust from 2019 to 2020:
– Tonik Energy (Tonik Energy Ltd.)
-Go Effortless Energy (Effortless Energy Ltd.)
-GnERGY (Gnergy Ltd.)
-Breeze Energy (Breeze Energy Supply Limited)
-Toto Energy (TOTO Energy Limited)
-Utility Energy (Rutherford Energy Supply Limited)
-Eversmart Energy (Eversmart Energy Ltd.)
-Solarplicity (Solarplicity Supply Limited)
-Cardiff Energy Supply (Cardiff Energy Supply Limited)
-Brilliant Energy (Brilliant Energy Supply Limited)
-Our Power (Our Power Energy Supply Limited)
-Economy Energy (Economy Energy Trading Limited)
Energy Suppliers That Have Withdrawn From The Market
Not all energy suppliers had to undergo a less graceful exit. Here are some of the energy suppliers that have withdrawn from the market from 2019 to 2020:
-Green Star Energy
Need Help Choosing an Energy Supplier?
If you do find yourself in the unfortunate situation of having to switch utility suppliers after your energy provider goes bust, consult the professionals at watt.co.uk. Our experts will help you compare utility prices and tariffs so that you end up with a new utility company that you actually like.
Contact us today to learn more.