Has your Energy Supplier Gone Bust?
Energy prices have been hitting the headlines. Wholesale prices have gone through the roof, putting some energy companies out of business. Not only is this causing turmoil throughout the industry it is also causing turmoil within people’s homes and businesses.
Why are electricity and gas prices rising?
The UK’s, and European, gas storage levels have been at historic low levels.
Both Europe and Asia last year faced a long and cold winter which resulted in more gas being consumed than expected. Maintenance issues in the North Sea, less gas supply from Russia, and low solar and wind generation mean there is less to go around.
Why are energy companies going bust?
Energy companies buy their energy in advance, it’s called hedging. Buying energy in bulk in advance helps reduce risk; wholesale prices may go up and down.
However, if a company has already bought enough energy, it can weather the storm and walk the line between turning a profit and staying competitive.
What do I need to do when my supplier stops trading?
Firstly, take a meter reading. Please click the link to see how to read your meter https://www.troocost.com/uncategorized/business-electricity-meter-reading-guide/
It will help with your final bill for your old supplier and means you’ll start your new account with the correct readings. You can also download your bills and check your balance to see if you’re in credit. Apart from that, you don’t need to do anything.
You will be contacted by your new supplier once you have been moved.
Will my power be cut off?
No, your power won’t be cut off. Ofgem simply moves you to a new supplier.
Will I be put on a new tariff?
Your old tariff with the supplier in question will probably end, and you’ll be set up on a new one. New suppliers will send you all the details, including how much you’re paying and when the contract ends. They’re not allowed to charge you an exit fee if you decide to switch, so it’s worth shopping around.
Will my energy bills go up?
Unfortunately, it’s likely your bills will go up, especially if your old supplier was selling energy too cheap. You can get in touch with your new supplier and ask to be put on their cheapest tariff. Or you can shop around to see if you can find something cheaper elsewhere. If, however you decide to go with a different supplier other than the one Ofgem has chosen for you, you won’t be charged an exit fee.
Should I cancel my direct debit?
Ofgem’s advice is you don’t need to cancel your direct debit as you could be at risk of building up debt. If you are in credit with your supplier, your money is protected, and any new supplier may not need to take any payments for a while. If you are in debt direct debits will continue.
Will my credit move with me?
If you have built up credit with the supplier which ceased trading it is all protected.
If you have built credit this will either be transferred to your new contract or paid back to you. Your new supplier will let you know how they’re going to do it.
What happens if I have debt?
That depends on what your new supplier agrees with your old supplier. If your new supplier agrees to take on customer debt, you’ll pay them as your debt will be transferred over. If that’s not what they agree then you may need to pay your old supplier. Don’t worry- this is exactly the sort of thing your new supplier will resolve.
Let us take away the worry.
If this seems all too complicated and you have more pressing things to be getting on within your business. Why not let Troo help you out. Our team of energy experts are here to help answer any of your questions and give you guidance. Give our team a call on 0808 164 2222 today.