6 steps: What to do if your energy supplier goes out of business
21st January 2020
The energy market is challenging and can be a turbulent place, especially for new or smaller suppliers. It’s unlikely that you will find yourself without an energy supplier out of the blue, but it can happen – so what next?
Nobody likes unexpected change when running a business. The good news is that there is a silver lining. Read through the steps below and we’ll walk you through what to expect, and how your business can benefit from a change in energy supplier.
I’ve found out my supplier has gone under. Now what?
1. Your energy supply won’t suddenly stop.
Just because your supplier is out of business, it doesn’t mean your energy supply is. Your electricity and gas will continue being supplied to your premises, so there’s no need to worry. If you don’t have a meter that takes readings automatically, it might be worth taking a meter reading now, so you have up-to-date information to hand.
2. You will be automatically moved to a new supplier
Ofgem is the independent body that works to regulate the energy industry and work on behalf of the consumers’ interests. They will start seeking out a new energy supplier who can take on your account, and the accounts of everyone else left in the lurch. It’s their job to get the best possible deal for you, and a number of suppliers will likely make a bid to try to win your account.
3. You won’t be locked into a contract
When a decision is made, you will be given your new supplier and put onto their “deemed rates”. Your new supplier should get in touch with you to explain all the details. “Deemed rates” simply means that these are rates you haven’t chosen. This contract can last indefinitely, so it’s absolutely advisable that you start looking around to get a competitive deal.
4. Your bills could change, and they will probably go up
While Ofgem will try to get you the best deal possible, deemed contracts are often more expensive – especially if a supplier has had to buy energy at short notice on the wholesale market to deal with the increase in customers. It’s generally recommended to get onto a fixed term contract as soon as you can to ensure bill certainty and a competitive rate.
5. Not happy? Now’s the time to switch
The good news is that you don’t have to go with your new supplier if you don’t want to. If you wanted to leave your new, deemed contract, you can do so without incurring any exit fees. This is the silver lining: you could have previously been tied into a four-year contract with your previous supplier, with no flexibility to switch. Now, you have a chance to take matters into your own hands. You are under no obligation to stay with the supplier you’ve been given and are free to find a competitive deal that suits your needs.
6. Find a supplier that understands your business
We might be biased, but as a supplier that exclusively serves businesses, we think that getting your gas or electricity from Opus Energy could be a brilliant choice.
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