UK guidance for domestic energy consumers in the United Kingdom when their energy supplier ceases trading.

This page provides formal instructions for household energy customers in the United Kingdom whose electricity or gas supplier has ceased trading. The guidance is issued in accordance with protocols set out by Ofgem, the UK energy market regulator, and is designed to ensure continuity of supply and protection of credit balances during supplier insolvency.

The steps outlined here apply to domestic customers and are legally supported under the Supplier of Last Resort (SoLR) mechanism.

Immediate Actions for Consumers

If your energy supplier goes out of business:

Do not switch suppliers immediately

  • Wait until Ofgem appoints a Supplier of Last Resort (SoLR) to take over your account.

Take a meter reading

  • Record the date and reading for both gas and electricity meters.
  • This helps ensure accurate billing during the transfer process.

Download or retain recent bills

  • Keep a record of your latest statements, account number, and payment history.

Your gas and electricity supply will continue as normal. There is no risk of disconnection when a supplier fails.

The Role of Ofgem and the Supplier of Last Resort

When a supplier goes bust, Ofgem takes regulatory action to protect customers. Within a few days, Ofgem will:

  • Appoint a new energy supplier (SoLR)
  • Announce the new supplier publicly via its website and news outlets
  • Ensure customer credit balances are protected where possible

Ofgem’s objectives during this process are to:

  • Maintain uninterrupted energy supply
  • Safeguard any credit on customer accounts
  • Transition accounts to the new supplier with minimal disruption

Customers do not need to contact Ofgem directly.

What the New Supplier Will Do

Once appointed, the new supplier (SoLR) will:

  • Contact you directly with a welcome letter and terms
  • Inform you of your new tariff (you are not locked in)
  • Explain how your credit balance will be honoured
  • Provide guidance on meter readings and billing continuity

While the tariff offered may not be the cheapest, you are free to switch suppliers after your account is formally transferred.

What Happens to Your Credit Balance?

If you had money in credit with your previous supplier, the SoLR process seeks to protect and honour this balance.

Key Conditions:

  • Credit is typically transferred to your new account once the full customer database is received and validated
  • This process may take several weeks

If your old supplier’s administrator has retained control of credit balances (in rare cases), your refund may come through separate insolvency proceedings.

You do not need to pursue this on your own unless specifically advised by the administrator.

Direct Debits and Billing

During the transition period:

Do not cancel your direct debit unless instructed

  • This helps ensure a smooth transfer of payments and credit records

Once contacted by the new supplier, you may:

  • Set up a new direct debit
  • Discuss any billing errors
  • Choose a new tariff or compare options with other suppliers

If you are on a prepayment meter, continue to top up as usual—your supply will continue uninterrupted. The new supplier will provide instructions if any meter changes are needed.

What to Do About Outstanding Complaints

If you had an open complaint with the former supplier:

  • These complaints will not transfer to the new supplier
  • You may seek resolution through the insolvency administrator, if one has been appointed

In some cases, complaints about financial loss or credit refund delays may be escalated to:

  • Citizens Advice: 0808 223 1133
  • The Energy Ombudsman (in limited circumstances)

You should retain any written correspondence and complaint reference numbers for future use.

Consumer Rights and Protections

The Supplier of Last Resort framework is designed to uphold consumer protections during supplier insolvency.

Under Ofgem rules:

  • Your energy supply must be maintained
  • You cannot be charged exit fees if you choose to switch after transfer
  • Your personal data must be handled securely and only used to facilitate account transfer
  • You must be informed in writing about your new contract and have the opportunity to change suppliers

If your energy supplier ceases trading:

Take and record meter readings (with the date) for both electricity and gas

  1. Retain copies of your latest bills and any credit statements
  2. Wait to be contacted by the new supplier appointed by Ofgem
  3. Do not switch or cancel your direct debit until you receive official confirmation
  4. Contact the new supplier once you receive welcome information to confirm account details and update payment instructions
  5. Compare tariffs after transfer if you wish to switch to a more competitive deal