Has your energy supplier recently gone bust? Found yourself with a new supplier and prices have risen? Worried your business will be left without gas or electricity if your supplier goes bust? Thinking about finding a new supplier for business energy?
We understand it can be a stressful and overwhelming time right now. With rising wholesale global gas prices, the whole world is facing unprecedented times, with more and more suppliers exiting the market each month.
Here at Energy Solutions, we are here to help you and your business. Our team of experts are happy to answer any of your questions and give you advice on the best steps your business should take with your energy.
If you are looking for some support, contact one of our dedicated team on 0131 610 1688, email us at info@energybrokers.co.uk or fill out this contact form for us to reach out when suits you best. After all, we know that you want to be spending time on the things that matter most to your business.
In the meantime, we’ve created this guide to help answer some common questions about the SOLR process. So, let’s get started.
What Happens When Energy Suppliers Exit The Market?
When energy suppliers leave the market, customers will be transferred to another supplier through trade sales. Ofgem, the energy regulator will step in and make sure businesses are protected, especially at times when suppliers leave in urgent ways.
Customers will be provided with a safety net, making sure that power will not be disrupted and the transfer to a new supplier is seamless. Also, any money that is owed will be returned to the customer. If your businesses energy supplier has exited the market, speak to one of our team and we can advise you on what actions you should take.
What Is The ‘Supplier of Last Resort’ (SoLR) Process?
You may have heard this term a lot recently, especially in the news and on social media. The SoLR process is when Ofgem directs an energy firm to take on customers from a recently failed supplier.
Ofgem ensures that the new supplier will be able to supply these extra customers without prejudicing their supply to their current customers. There is a competitive process in place that helps customers get the best deal. If this has happened to you, we advise taking photos of your latest meter readings and waiting to be contacted.
Could My Business Energy Bills Increase?
Ofgem tries to get the best deal for customers that use the Supplier of Last Resort process. The appointed supplier will usually place customers on a ‘deemed’ contract, a deal that customers haven’t chosen. The price will likely be higher than your previous contract, however, all customers are covered by the energy price cap.
Once you have been contacted by your new supplier, we recommend you ask them to place you on the cheapest tariff or to contact us to help your business find the cheapest energy deal on the market. Your business won’t be charged any exit fees too.
What Is The Energy Price Cap?
The energy price cap is a scheme created by the UK Government to protect energy customers from global gas prices suddenly increasing. For customers on default energy tariffs, the energy price cap sets the maximum price for every unit of gas, as well as standing charges.
It doesn’t matter whether you pay by standard credit, prepayment meter or direct debut, customers cannot be chaired more than the price set on the energy price cap. Even if your supplier goes bust, you are protected.
Which Energy Suppliers Have Recently Gone Bust?
In 2021 alone, there have been a record number of energy suppliers exiting the market. Many factors have impacted energy suppliers over the last few years, but especially this year. Below, you can find the suppliers that have gone bust, as well as who customers were appointed to.
| When | Old supplier | Customer base | New supplier |
| 3 November 2021 | CNG Energy Limited | 41,000 non-domestic | Pozitive Energy |
| 2 November 2021 | Omni Energy Limited | c 6,000 domestic | Pending appointment |
| 2 November 2021 | MA Energy Limited | c 300 non-domestic | Pending appointment |
| 2 November 2021 | Zebra Power Limited | c 14,800 domestic | Pending appointment |
| 2 November 2021 | Ampoweruk Ltd | c 600 domestic c 2,000 non-domestic | Pending appointment |
| 1 November 2021 | Bluegreen Energy Services Limited | c 5,900 domestic non-domestic | Pending appointment |
| 18 October | GOTO Energy | c22,000 domestic | Shell Energy from 21 October 2021 |
| 14 October | Daligas | c9,000 domestic and non-domestic | Shell Energy from 17 October 2021 |
| 13 October | Pure Planet | c235,000 domestic | Shell Energy from 17 October 2021 |
| 13 October | Colorado Energy | C15,000 domestic | Shell Energy from 17 October 2021 |
| 29 September | ENSTROGA | c6,000 domestic | E.ON Next from 3 October 2021 |
| 29 September | Igloo Energy | c179,000 domestic | E.ON Next from 3 October 2021 |
| 29 September | Symbio Energy | c48,000 domestic non-domestic | E.ON Next from 3 October 2021 |
| 22 September | Avro Energy | c580,000 domestic | Octopus Energy from 26 September 2021 |
| 22 September | Green Supplier Limited (‘Green.’) | c255,000 domestic non-domestic | Shell Energy from 27 September 2021 |
| 14 September | People’s Energy | c350,000 domestic c1,000 non-domestic | British Gas from 19 September 2021 |
| 14 September | Utility Point | c220,000 domestic | EDF from 18 September 2021 |
| 7 September | PFP Energy | 82,000 domestic 5,600 non-domestic | British Gas from 11 September 2021 |
| 7 September | MoneyPlus Energy | c9,000 domestic | British Gas from 11 September 2021 |
| 9 August | Hub Energy | c6,000 domestic c9,000 non-domestic | E.ON Next from 13 August 2021 |
| 27 January | Green Network Energy | c360,000 domestic non-domestic | EDF from Sunday 31 January 2021 |
| 27 January | Simplicity Energy | c50,000 domestic | British Gas Evolve from 31 January 2021 |
What Is A ‘Special Administration Regime’ (SAR)?
Ofgem will use a SAR when they can’t use the Supplier of Last Resort process to appoint customers with a new energy supplier. There are various factors for an SAR to be used, such as the size of the supplier that is in financial difficulty.
An SAR will be used until the supplier has been
- Sold
- Rescued – such as restructuring
- Customers have been transferred to other suppliers
An SAR reduces the risk of financial failure having a widespread impact across the energy market, such as a SoLR being able to serve their existing customer base. This will support the market and protect customers from more companies failing.
Furthermore, the most important reason Ofgem used an SAR is to ensure customers receive energy.
What Should I Do If My Energy Supplier Goes Bust?
So, your energy supplier has gone bust. This is a common problem that many business owners are facing at the moment. But don’t worry, your energy supply won’t be affected. If you are unsure or need some advice and guidance, you can contact us to help guide you through the process. To start, try these tips:
| Take a meter reading | Firstly, take a meter reading and some photos of that reading. |
| Be patient and wait to be appointed a new supplier | Be calm as you don’t need to do anything. Your energy supply won’t be disrupted and the whole process will take a couple of days. Your credit is protected as well as your supply. |
| Your new supplier will contact you | Once your new supplier contacts you, ask them to place you on the cheapest tariff, or to contact us to help your business find the cheapest energy deal on the market. You are free to switch supplier and your credit balance is protected. |
What Should I Do If I’m Struggling With Energy Bills?
With rising energy prices, more businesses are in need of support this winter. If you are looking for some advice and guidance, you can contact us and one of our team of experts will help to answer your questions.
Ofgem has announced emergency measures, as well as commitments to support the most vulnerable people this year. Energy suppliers are required to support and help customers agree to a payment plan they can afford. This includes:
- Payment reductions or breaks
- More time to pay
- Reviews of your payments and debt repayments
- Access to hardship funds
- The Priority Service registration (free support service for those in a vulnerable situation)
Are There Government Schemes To Help Me With Energy Bills?
For more advice and guidance, check out the Ofgem guide on help with energy bills. There is also the Let’s Talk benefits eligibility checker that includes help for those that have been impacted by the coronavirus. Below are some other options:
| Click the link for more information | Description |
| Warm home discount | For those receiving Pension Credit or those in low-income households, there is a £140 discount. |
| Winter fuel payment | For those born on or before 5th October 1954, there is a helpful fuel payment of £100 to £300. |
| Household support fund | There is a funding package to help vulnerable households this winter. Your local council can advise you on how to access the fund. |
| Cold weather payment | For every 7 days of very cold weather between November and March, there is a payment of £25. |
| Fuel direct scheme | A scheme set up to help people repay a debt from benefit payments. |