Martin Lewis gives Brits advice on the energy bill crisis
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Twenty-four energy companies have ceased trading this year, as the price of gas continues to skyrocket. More than one million households in the UK have already seen their suppliers go bust, with many more expected over the coming months. It’s vital that you know what to do if your supplier goes out of business.
Avro Energy and Green Supplier Limited went bust on Wednesday September 22, it’s been confirmed.
The two companies combined supply energy to almost three percent of the UK.
Six energy companies have been forced to close their doors in the UK since January, which correlates to the 250 percent rise in the price of wholesale gas.
Avro, Green, People’s Energy, PFP Energy, MoneyPlus Energy, Utility Point, and People’s Energy are the six firms to cease trading.
All combined, the six companies represented about five percent of the UK market – and 1.5million customers.
One of the UK’s largest energy suppliers, Bulb, is now seeking financing.
Igloo, meanwhile, is in the middle of restructuring talks.
Analysts have warned that as many as 42 energy suppliers could face going bust by the end of winter.
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What to do if your energy supplier goes bust
If your energy provider goes out of business, it’s vital that avoid switching suppliers before a new one has been appointed to you.
Ofgem, which is the gas and electric market’s regulator, will automatically appoint you a new provider.
You should be given a new energy company within a few weeks.
If you move suppliers before one’s been appointed to you, you could face losing any money that you had in credit with your previous energy provider.
MoneySavingExpert.com founder, Martin Lewis, wrote on the MSE website: “Thankfully the Ofgem safety net means your credit is protected, and your supply will remain on as you’re ported to a new firm.
“Yet I need to be honest, while that transfer process can be smooth, quick and easy, some will find it a pain in the backside, as they get trapped between two databases that don’t talk to each other well.
“If that does happen, I’m afraid to say it will take a mix of patience and persistence to get it sorted.”
But, one thing you can do while you wait to be contacted by your new supplier is take meter readings.
These readings will be handy for when you’re allocated a new energy provider.
Once you’ve been contacted, it’s important to check the deal you’ve been enrolled on – it may end up costing more.
If that’s the case, you should check to see if you can save by switching elsewhere.
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