🇬🇧 UK

What happens when your energy supplier is taken over or fails?

Looking for US rules? → US money answers

UKPublished 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

A supplier takeover and a supplier failure are different events. In a takeover, the acquiring business usually handles the customer migration; in a failure, Ofgem appoints a supplier of last resort.

Next question: What happens when an old or replacement smart meter is due? →

Keep your latest bill, meter reading and account balance. After a supplier change, confirm the new tariff and payment arrangements before changing direct-debit details.

Ofgem: Managing and switching your energy supply

Takeover is not the same as failure

When one energy business takes over another, the transaction can be a commercial acquisition rather than a regulatory supplier failure. The practical customer task is to understand who now holds the account and which terms apply. In a supplier failure, Ofgem has a specific process for appointing a supplier to protect continuity. Do not assume the two situations produce the same tariff or billing outcome. Read the notice from the old and new supplier and keep the account information you held before the change.

Protect your starting balance

The safest record during a supplier change is a dated meter reading and a copy of the latest bill or statement. Your old account may show a credit or debit balance, and the new supplier needs an accurate handover. Take a photo of the meter where practical. Keep direct-debit confirmation and payment records until the final bill is settled. If the account number changes, do not throw away the old number; it can help trace a disputed balance.

Check the tariff after migration

Do not assume that being moved to a new supplier means you are automatically on the same commercial tariff. Review the tariff name, unit rates, standing charges, fixed-term dates and exit terms in the communication. The Ofgem price cap applies to certain default tariffs and sets a maximum revenue structure for suppliers, not a universal price for every customer. A customer on a fixed-term deal can have different contractual terms.

Direct debits need a separate check

A supplier transfer can change who collects your payment. Before cancelling or approving a new direct debit, confirm the supplier’s details using a trusted statement or official website. Watch for scam emails that use a supplier migration as a reason to request bank details. If a payment has already been taken incorrectly, contact the bank and supplier promptly and keep the evidence.

If the supplier actually fails

When an energy supplier fails, Ofgem appoints a supplier of last resort through its regulatory process. Your supply continues while the transition is arranged. The replacement supplier should explain what happens to the account and credit balance. Keep using energy normally, keep paying any genuine charges, and wait for the new supplier’s instructions before attempting to “switch away” in the middle of the transfer.

Use the complaints route for billing problems

If the new supplier produces the wrong starting balance, applies the wrong tariff or does not deal with a complaint, use the supplier’s complaints process first. Citizens Advice offers consumer guidance, and the Energy Ombudsman can be relevant to eligible complaints once the supplier’s process has been exhausted. Keep a concise timeline with meter readings, bills, payments and messages; this is far more useful than trying to reconstruct the account later.

Worked example

Illustrative example: Suppose a household receives a letter saying its energy account is moving to a new supplier. Before the change, it records the gas and electricity meter readings, downloads the latest statement and notes the direct-debit amount and date. After the migration, it checks the new account for the same address, records a new reading and compares the opening balance with the closing position supplied by the old supplier. It also checks whether the new agreement is a default tariff or a fixed deal. If an email asks for new banking details, the household does not use the email link; it signs into the supplier’s official website or uses a trusted contact route. This keeps the commercial takeover, account reconciliation and scam risk as separate issues instead of assuming they are all one problem.

Do I need to do anything when my energy supplier is taken over?#

Usually you should keep your records, take a meter reading, check the new account and read the new supplier’s terms. The exact process depends on whether the business was acquired or the supplier failed. Do not ignore final bills or notices, and use official contact details if you need to confirm a change.

What happens to my energy credit if the supplier fails?#

Ofgem’s supplier-failure process is designed to protect continuity and deal with domestic customer credit balances. The appointed supplier explains how the account will be reconciled. Keep your final bill and meter reading, and do not assume an unrecorded credit will disappear. Contact the appointed supplier if the opening balance looks wrong.

Will my energy tariff stay the same after a takeover?#

Not necessarily. A takeover can have terms specific to the acquiring business or an agreed migration process. Read the tariff information rather than relying on the old supplier’s name. If the tariff is unsuitable, compare the available options after the account transfer is complete and check any fixed-term exit terms.

Should I cancel my old direct debit?#

Do not cancel a direct debit merely because the supplier name has changed. Confirm the final bill and who should receive future payments. For a new direct debit, verify the instruction independently using the supplier’s official website or statement. Keep bank records until the old account is fully settled.

What is the Ofgem price cap in late 2026?#

Ofgem’s published cap for 1 October to 31 December 2026 is based on a typical dual-fuel direct-debit household and is £1,723 a year on the cap’s representative basis. It is not a flat annual bill and does not mean every household pays £1,723; actual bills depend on usage and tariff type.

Can I switch supplier during a takeover?#

The practical answer depends on the stage and type of transfer. During a supplier-failure process, Ofgem and the appointed supplier have a specific migration procedure, so switching immediately can complicate reconciliation. After the account is established, ordinary switching rules can apply. Follow the appointed supplier’s instructions and keep your meter evidence.

Where can I get free help with an energy dispute?#

Citizens Advice provides free consumer guidance on energy problems. If the supplier’s complaint is not resolved, the Energy Ombudsman may be available for eligible complaints. Keep bills, readings, payment records and correspondence so the issue can be explained in a clear timeline.

Keep reading

Next question →What happens when an old or replacement smart meter is due?

Sources

Figures were checked against these sources before publication. If a rule changes, we update the page and show the new date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.