Millions of UK energy customers learned last year that their providers were leaving the energy market, with Together Energy becoming the first supplier in 2022 to go bust.

If your energy provider announces that it is stopping trading, any credit balance you have with them is protected and guaranteed by the energy regulator Ofgem. It will assign you a new energy supplier, so you won’t have to do anything. Your energy supply won’t be disrupted, so the only change you’ll notice is that you’ve been moved to a different supplier.

Neil Lawrence, Director of Retail at Ofgem, said: “We know this is a worrying time for many people and news of a supplier going out of business can be unsettling. I want to reassure affected customers that they do not need to worry, under our safety net we’ll make sure your energy supplies continue”.

“Ofgem will now choose a new supplier for you and whilst we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.”

Ofgem advises that if your supplier has gone bust, you should take meter readings as soon as possible. Once your new supplier has been in touch, customers can ask to be put on their cheapest tariff, or shop around for a better deal from another supplier. You won’t be charged any exit fees for switching away from your new supplier.

If I decide to switch from my new supplier how long will it take?

Comparing available energy deals typically takes just a few minutes. You can find all the information you need to complete your switch on your most recent bill. This includes the name of your energy supplier and tariff, your energy consumption, what you’ve paid and the current balance. This will either be a credit or debit balance.

Bear in mind that fixed rate tariffs are currently very expensive at the moment, so for most people the best option is likely to be sticking with a variable tariff and the price cap.

Once you’ve chosen which deal you want to move to, switching energy tariffs should take no more than 21 days, and your new supplier should do all the work on your behalf. Your final bill from your old supplier should arrive within six weeks. It’s the same meter and you won’t need any new pipes, nor will you lose your energy supply – the only difference will be the cost and who you pay.

Why are so many energy providers stopping trading?

Like so many other businesses, the pandemic combined with soaring wholesale gas prices has hit energy suppliers hard, particularly smaller providers.

Richard Neudegg, head of regulation at Uswitch.com said: “Together Energy, which includes Bristol Energy, has become the latest victim of the energy crisis and the first supplier to exit the market in 2022. This is a stark reminder that the challenges posed to both providers and consumers by high wholesale gas prices are still a relevant and ongoing concern.”

Has your energy supplier stopped trading and did you stick with the supplier that Ofgem moved you to, or switch to a different supplier? You can join the money conversation on the Rest Less Community forum, or leave a comment below.

The current energy crisis is causing significant disruption, and affecting the tariffs energy providers can offer. For all the most recent information, read our article on the current energy crisis and what to do about soaring costs.

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