What happens when your energy supplier goes bust?

Tomato Energy has recently ceased trading. Ofgem has appointed British Gas as the Supplier of Last Resort. If your business is affected, contact MoneySuperMarket to explore your options.

If your business energy supplier goes bust or stops trading, don’t worry – your energy supply won’t be disrupted. Ofgem, the UK’s energy regulator, has processes in place to ensure that your premises continue to receive power and that you are switched to a new supplier without interruption. Here's what you need to know. 

What’s the difference between going bust and ceasing to trade? 

The two phrases are used interchanagably, but there is an important difference:

• Going bust means the company closes down completely, is removed from the Companies House register, and has its assets sold off to pay creditors. 
• Ceasing to trade means the company halts its operations but remains registered as a limited company. 

What should you do if your energy supplier goes bust? 

If your energy supplier goes bust or ceases trading, there should be no disruption to the power supply at your premises, and Ofgem will automatically allocate a new supplier. But you should take the steps outlined below as soon as it's confirmed that your supplier is going out of business:

1. Take a meter reading: This helps ensure your final bill is accurate. It’s also a good idea to cancel any Direct Debits, although waiting until you’ve signed up with a new supplier may be advisable. 
2. Wait for a new supplier: Ofgem will automatically appoint a new supplier under its safety net. You’ll typically be informed about your new supplier within 72 hours, and the switch will be completed within 14 days. 
3. Shop around for a new deal: Once the new supplier is appointed, you can negotiate a new energy contract. As you won't be on this supplier's most competitive rates, it's advisible to arrange a fixed-rate contract with them or switch to a new supplier. This is a good time to shop around for better rates, as you can switch straight away without incurring any exit fees. Get in touch with MoneySuperMarket and Bionic to explore competitive options for your business. 

How many energy suppliers have gone bust or ceased trading?

More than 70 energy suppliers have gone bust or ceased trading in the last decade. 

Rising wholesale costs are one of the main reasons why suppliers go bust. If a supplier sets rates low to entice new customers, they can find themselves in trouble when wholesale prices rise to the point where they're losing money by supplying energy on these terms.

Government levies have also played a part in the demise of some suppliers. If they miss payments, they are fined and the combination of catching up with payments and paying fines can be enough to put a supplier out of business. 

Below is a list of all the suppliers that have gone bust or ceased trading since 2016:

Supplier	When did it go bust?	What happened next?
Tomato Energy	November 2025	British Gas
Rebel Energy	April 2025	British Gas
Opus Energy*	September 2024*	Contracts sold by Drax to EDF Energy
UK Energy Incubator Hub	July 2022	Octopus Energy appointed SoLR
Xcel Power Ltd	February 2022	Yü Energy
Whoop Energy	February 2022	Yü Energy
Together Energy/Bristol Energy	January 2022	British Gas appointed SoLR
Zog Energy	December 2021	EDF Energy
MA Energy	November 2021	Smartest Energy
Orbit Energy	November 2021	ScottishPower appointed SoLR
Entice Energy	November 2021	ScottishPower appointed SoLR
Bulb**	November 2021	Placed into special administration*
Social Energy Supply	November 2021	British Gas appointed SoLR
Neon Reef	November 2021	British Gas appointed SoLR
CNG	November 2021	Pozitive Energy appointed SoLR
Bluegreen Energy Services Limited	November 2021	British Gas appointed SoLR
AmpowerUK	November 2021	Yü Group appointed SoLR
Omni Energy	November 2021	Utilita Energy appointed SoLR
Zebra Power	November 2021	British Gas appointed SoLR
GOTO Energy Limited	October 2021	Shell Energy appointed SoLR
Daligas	October 2021	Shell Energy appointed SoLR
Colorado Energy	October 2021	Shell Energy appointed SoLR
Pure Planet	October 2021	Shell Energy appointed SoLR
Symbio Energy	September 2021	E.ON appointed SoLR
Igloo Energy	September 2021	E.ON appointed SoLR
Enstroga	September 2021	E.ON appointed SoLR
Green Supplier Ltd.	September 2021	Shell Energy appointed SoLR
Avro Energy	September 2021	Octopus Energy appointed SoLR
People's Energy	September 2021	British Gas appointed SoLR
Utility Point	September 2021	EDF appointed SoLR
MoneyPlus Energy	August 2021	E.ON appointed SoLR
PFP Energy	August 2021	British Gas appointed SoLR
HUB Energy	August 2021	E.ON appointed SoLR
Simplicity Energy	January 2021	British Gas appointed SoLR
Green Network Energy	January 2021	EDF appointed SoLR
Yorkshire Energy	December 2020	ScottishPower appointed SoLR
Tonik	October 2020	ScottishPower appointed SoLR
Britsol Energy	October 2020	Acquired by Together Energy
Your Energy Sussex	September 2020	Sold to British Gas
White Rose Energy	September 2020	Sold to British Gas
Southend Energy	September 2020	Sold to British Gas
RAM Energy	September 2020	Sold to British Gas
The Leccy	September 2020	Sold to British Gas
Great North Energy	September 2020	Sold to British Gas
Fosse Energy	September 2020	Sold to British Gas
Ebico	September 2020	Sold to British Gas
CitizEn Energy	September 2020	Sold to British Gas
Beam Energy	September 2020	Sold to British Gas
Angelic Energy	September 2020	Sold to British Gas
Robin Hood Energy	September 2020	Sold to British Gas
iSupply	September 2020	EDF Energy appointed SoLR
Better Energy	March 2020	Customers switched to PFP
Gnergy	March 2020	Bulb appointed SoLR
Breeze Energy	December 2019	British Gas appointed SoLR
Toto	October 2019	EDF Energy appointed SoLR
Eversmart	Septemnber 2019	Utilita appointed SoLR
Solarplicity	August 2019	EDF appointed SoLR
Cardiff Energy	March 2019	SSE appointed SoLR
Brilliant Energy	Marche 2019	SSE appointed SoLR
Our Power	January 2019	Utilita appointed SoLR
Economy Energy	January 2019	Ovo Energy appointed SoLR
One Select	Decemerb 2018	Together Energy appointed SoLR
Spark Energy	Novembver 2018	Ovo Energy appointed SoLR and acquired Spark Energy Ltd. operating group
Extra Energy	November 2018	Scottish Power appointed SoLR
Snowdrop Energy	October 2018	Transferring customers to Nabuh Energy
Usio Energy	October 2018	First Utility appointed SoLR
Electraphase	August 2018	Administration. All customers switched
Affect Energy	August 2018	Acquired by Octopus Energy
Iresa	July 2018	Octopus Energy appointed SoLR
Gen 4U	July 2018	Octopus Energy appointed SoLR
Flow Energy	May 2018	Acquired by Co-Operative Energy
Brighter World Energy	January 2018	Customers moved to Robin Hood Energy
Future Energy	January 2018	Green Star Energy appointed SoLR
GB Energy	November 2016	Co-operative Energy appointed SoLR

^{*Opus Energy is a part of the Drax Group. On June 26, 2024, Drax announced an agreement to sell up to 90,000 small and medium-sized enterprise (SME) customers from Opus Energy Group to EDF Energy. This transaction, subject to regulatory approval, is expected to be completed by September 2024.}

^{**Regarding Bulb, Ofgem stated that it supports placing Bulb into special administration to ensure continuous operation without any disruption to service or energy supply. Bulb customers are reassured that their energy supply remains secure and any credit balances are protected.}

How long does it take to switch business energy suppliers after a supplier has gone bust? 

Once your supplier goes bust or ceases trading, Ofgem aims to appoint a new supplier within 14 days. The regulator will enter the old supplier’s contracts into a bidding process in which suppliers compete for the available contracts. 

For businesses with smart meters, if the new supplier doesn’t support the smart meter, it will function as a regular gas or electricity meter, and you’ll need to take manual readings. 

What happens to your energy contract when your supplier goes bust? 

If your supplier ceases trading, your contract with them automatically ends. Ofgem will then place you on a deemed contract or a variable rate plan with their appointed Supplier of Last Resort, which generally come with higher rates than your previous fixed deal. These higher rates compensate the new supplier for the added risk of taking you on as a customer without knowing your payment history. 

What if you're in debt with your old supplier? 

If you owe money to your previous supplier, you’ll still need to pay off your debt. A new supplier may take on your debt and set up a repayment plan. If an administrator handles the debt, you’ll receive bills from them, not your old supplier. It’s important to arrange a repayment plan that works for your business, especially if you’re struggling financially. 

What if you're in credit with your old supplier? 

In the case of credit on your account, Ofgem will try to ensure your new supplier refunds some or all of the amount owed. However, this isn’t guaranteed. If the credit can’t be refunded, you may need to contact your old supplier’s administrator to reclaim the funds. Be prepared for this process to take some time – potentially over a year – and you might not receive the full amount owed. 

What happens if you're switching and your new supplier goes bust? 

If you're in the middle of switching and your new supplier goes bust, you’ll be switched to the chosen Supplier of Last Resort (SoLR). If this happens, you should immediately look to arrange a better-priced fixed contract with that supplier or a different one. 

What happens if you're switching suppliers and they both go bust? 

If you're in the middle of switching business energy suppliers and both go bust (unlikely, but you never know) the outcome depends on how far along the process you are: 

• If the switch is complete: You will be transferred to the Supplier of Last Resort (SoLR) for the supplier you were in the process of switching to. 
• If the switch hasn’t been completed: You will be transferred to the SoLR for the supplier you were leaving. 

In either case, your energy supply will remain uninterrupted, and you’ll be switched to a new supplier without any disruption. 

How does Ofgem choose a new supplier? 

Ofgem’s primary goal in selecting a Supplier of Last Resort (SoLR) is to ensure that all customers continue to receive a steady supply of gas and/or electricity. 

When choosing a new supplier, Ofgem looks for one that can quickly and efficiently take on new customers without negatively affecting its existing ones. The selected supplier must also demonstrate it has the capacity to secure enough energy to supply the new customers without causing significant cost increases. 

Additionally, Ofgem considers whether a supplier is willing to voluntarily reimburse customers' credit balances. If no supplier is willing to take on customers from a failed supplier, Ofgem will appoint the supplier it considers most capable of handling the situation. 

What to do while waiting for your new supplier 

While you wait for your new supplier, take the following steps: 

• Take meter readings and note down the numbers
• Keep any recent bills as they help verify your account balance
• Note your account balance and check it against your most recent statement

Additionally, avoid cancelling your Direct Debit until your new account is set up to prevent payment issues. 

What if you have an unresolved complaint? 

If you have an outstanding complaint with your old supplier, bring it to your new supplier. They aren’t obliged to resolve complaints from the previous supplier, but if your case was escalated to the Ombudsman, they’ll follow up with you. 

Can you switch from your SoLR to a new supplier?

Yes, and we recommend that you either switch or arrange a fixed-rate deal with your SoLR as soon as possible. This is because they'll place you on deemed or variable rates, which are much more expensive than fixed rates.

If you're in this situation, get in touch with the the business energy experts at Bionic by clicking the "Compare tariffs today" button on the right or clicking this business energy comparison link. They'll compare quotes to find you more competitive rates.