What happens if your business energy supplier goes bust? Ofgem’s supplier of last resort explained

Having a reliable energy supplier is crucial for your business operations. But what happens if your energy supplier goes bust? This situation can create uncertainty and potential disruption for your business. Fortunately, Ofgem has measures in place to protect you.

At Business Utilities UK, we provide expert guidance on energy contracts, helping you navigate these challenges with ease and confidence.

Understanding the Risks of Supplier Insolvency

Energy suppliers can go bust due to various reasons, including financial mismanagement and market volatility. When this happens, it can affect your energy supply. Here’s what you need to know:

• Energy supply may be interrupted.
• You could face uncertainty regarding your energy bills.
• You might need to switch to a new supplier quickly.

Ofgem’s Supplier of Last Resort (SoLR) Scheme

The Supplier of Last Resort scheme is a safety net for businesses when their energy supplier fails. Here’s how it works:

• Ofgem steps in to ensure you maintain a continuous energy supply.
• A new supplier is appointed to take over your account.
• This new supplier will typically contact you and explain the next steps.

This scheme is designed to minimise disruption and ensure that you remain protected during the transition.

What to Expect When Your Supplier Goes Bust

If your supplier goes bust, here’s what will happen:

• You will receive a notification from Ofgem or your new supplier.
• Your energy supply will not be interrupted, thanks to the SoLR scheme.
• You will be moved to a new supplier’s terms and conditions, which may differ from your previous contract.

It’s important to review the new terms to ensure they meet your business needs.

How to Choose a New Energy Supplier

Once you are assigned a new supplier, you may want to consider your options:

• Compare the new contract terms with your previous supplier.
• Look for exclusive rates that may be available through brokers like Business Utilities UK.
• Consider switching if the new terms are not satisfactory.

Our experts can assist you in finding the right energy contract that suits your business.

Protecting Your Business from Future Supplier Failures

To safeguard your business against the risk of supplier insolvency, consider the following:

• Regularly review your energy contracts.
• Stay informed about the financial health of your supplier.
• Utilise energy management services to optimise your energy usage.

At Business Utilities UK, we help businesses mitigate risks associated with energy contracts.

If your energy supplier goes bust, Ofgem’s Supplier of Last Resort scheme ensures you remain protected and connected. For tailored advice and to explore your options, contact Business Utilities UK today.

Frequently Asked Questions

What should I do if I hear my energy supplier has gone bust?

Remain calm and await communication from Ofgem or your new supplier. Your energy supply will continue without interruption.

Will I have to pay more if my supplier goes bust?

You may be moved to a new supplier with different rates, but you can compare options to find the best deal.

How long does it take to switch to a new supplier?

The transition to a new supplier under the SoLR scheme is usually quick, often within a few days.

Can I switch suppliers immediately after my supplier goes bust?

You can explore new options, but you must first be assigned to a new supplier under the SoLR scheme.

Are there any fees involved in the supplier transition?

There are no fees for switching due to supplier failure, as Ofgem manages the process.