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Energy Supplier Went Bust: What Happens Now
If your energy supplier goes bust, your supply will not be cut off and your credit balance is still protected. Ofgem chooses a new supplier, which will contact you, possibly within up to 14 days. Take a meter reading straight away and keep it. You do not need to switch or usually cancel your Direct Debit.
At a Glance
Your Rights
What the rules say, with a link to the official source for each.
What Happens
Your Supply
Your energy supply will not be cut off, and prepayment meters can still be topped up. Ofgem chooses a new supplier (a supplier of last resort), or a special administrator may run the failed company. source
Your Credit
For households, your credit balance is still protected by Ofgem's rules. Businesses could lose their credit balance. source
What to Do
Meter Reading
You do not need to do anything. Take a meter reading as soon as you can and keep a record. You do not need to switch or usually cancel your Direct Debit. The new supplier will contact you once chosen, which could take up to 14 days. source
Your New Tariff
You are moved automatically to a 6-month deemed contract with the new supplier, covered by the price cap. You can ask for its cheapest tariff or switch to another supplier, and you cannot be charged an exit fee. source
Time Limits to Know
Miss a deadline and you can lose a right. Check the dates on your own paperwork.
- Straight awayTake a meter readingPhotograph it with the date
- 14 daysNew supplier contacts youIt could take up to 14 days
- 8 weeksEnergy complaint to the Energy OmbudsmanAfter 8 weeks with no resolution, or on receiving a deadlock letter
Steps to Take
Step 1 of 5
Take a meter reading straight away and photograph it with the date.
Step 2 of 5
Find your last bill so you know your credit or debt balance.
Step 3 of 5
Do not switch or cancel your Direct Debit yet. Wait for the new supplier to contact you.
Step 4 of 5
Check the new supplier has your correct credit balance and meter reading.
Step 5 of 5
Once moved, compare tariffs. You can switch without an exit fee. If your credit is wrong, complain to the new supplier.
(Tap the numbers to reveal steps)
Where to Go If It Is Not Put Right
Your options, in order, and when each one applies.
Your Energy Supplier's Complaints Team
Always start here, in writing.
Energy Ombudsman
After 8 weeks with no resolution, or when you get a deadlock letter.
Good to Know
Small things that make your complaint stronger.
Keep your old account number and last bill: you may need them to prove your credit balance.
Want Help?
If you would like one of our team to look at your problem, our initial case review is free. We cannot guarantee any outcome and we do not give legal advice.
Lead reviewer
Luke Marley
Founder and Lead Reviewer
Luke founded CPUK in 2026 after seeing how hard it is for ordinary people to get problems with companies put right. He oversees our guides and checks them against official sources.
Research by Katie Burt, Co-founder and Operations Lead (17 years in the care sector, including managing services for vulnerable adults), and the CPUK Research Team. Researched with AI-assisted research tools, then checked and corrected by our team.
Last checked: 13 October 2026. We are not paid by the companies we write about. Adverts never affect our guidance. Read our editorial policy.
Sources and official links
- ofgem.gov.uk/blog/how-youre-protected-when-energy-firms-collapse Checked 13 October 2026
- energyombudsman.org/advice-for-consumers/what-is-back-billing Checked 12 October 2026