🇬🇧 UK

What should I do when an energy supplier stops trading?

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

When an energy supplier stops trading, keep the supply on, record your meter reading, retain bills and payment evidence, and follow Ofgem’s Supplier of Last Resort process. Do not assume an unusually cheap tariff was a scam or rush into duplicate payments during the transfer.

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Take a dated meter reading and keep the final bill, account balance and payment records ready for the replacement supplier’s reconciliation process.

Read Ofgem supplier-failure guidance

When an energy supplier stops trading, Ofgem’s Supplier of Last Resort process is designed to keep domestic supply running

The practical question is not whether a vanished supplier’s tariff was “too good to be true” after the event; it is what a household should do when an energy supplier fails or leaves the market. Ofgem’s safety net is designed to maintain continuity of supply, protect domestic customer credit balances under the relevant process and move customers to a new supplier without requiring them to arrange an emergency replacement themselves.

Tomato Energy is a useful 2026 example. Ofgem records that Tomato ceased trading on 5 November 2025 and that its electricity customers were moved to British Gas as Supplier of Last Resort. Ofgem’s 4 June 2026 decision confirms the appointment. The lesson is broader than Tomato: supplier failure is handled through a regulated safety-net process rather than by asking customers to guess which company will keep the lights on.

What a customer should do first

take a meter reading and record the date
keep the latest bill and account balance
save evidence of direct debits or payments
wait for the appointed replacement supplier’s instructions
check the new account once the transfer is completed

What happens to money already paid

Ofgem’s Supplier of Last Resort arrangements include protections for domestic customer credit balances. Keep the old statement because the new supplier may need it to reconcile the opening balance. Do not assume a missing historic balance is lost; ask the new supplier to investigate using the account evidence you hold.

Do not confuse a replacement supplier with your long-term choice

The SoLR appointment is intended to protect continuity, not to force you to remain on a particular tariff forever. Once the account is stabilised and the transfer instructions are complete, compare the available tariffs again. Switching too early can create confusion while the old and new accounts are being reconciled.

Use the supplier-failure event to strengthen scam checks

Customers waiting for account migration can be targeted by fake emails asking for bank details or urgent payments. Use contact information from Ofgem or the appointed supplier’s official website. Do not send a photo of a meter or a copy of a bill to an unknown caller simply because they know the old supplier’s name.

What “too good to be true” really means

A very cheap tariff can reflect a supplier’s commercial strategy rather than an obvious scam, but a household should still check the contract, standing charge, unit rates, exit terms and supplier legitimacy before switching. The fact that a company later fails does not prove that every offer it once made was fraudulent.

What happens after a supplier fails

Ofgem's safety-net process is designed to keep domestic electricity and gas supplied when a supplier exits the market. The appointment of a Supplier of Last Resort means the customer should continue receiving energy while the new supplier handles the transfer arrangements. Your priority is therefore record-keeping rather than immediately choosing another tariff. Photograph or otherwise record the meter reading, keep the final bill and account balance, and save bank statements showing direct debits. These records are useful because the transfer can involve reconciliation of credit balances and opening readings before the new account is finalised.

How to protect yourself from a duplicate payment

When a supplier fails, do not create overlapping direct debits simply because a new supplier contacts you quickly. Check which company is now responsible for the supply and wait for clear instructions about the opening account. Keep evidence of any credit owed to you and any outstanding amount you genuinely owe. If correspondence conflicts, use the appointment information published by Ofgem or the appointed supplier's official customer process rather than links in an unsolicited message. A very low tariff is not by itself proof of fraud, but an offer that is impossible to reconcile with the contract you signed should be investigated before you send further money.

Worked example

Example: A Tomato customer had a £214 electricity credit when the supplier ceased trading. The customer keeps the final statement and meter reading rather than paying the new supplier a second time for the same period without checking the transfer balance.

If the new account opens with £150 credited and the old statement shows £214, the difference is £64: £214 − £150 = £64. The customer can then ask the new supplier to investigate the £64 reconciliation gap using the documented statements.

The customer should keep the final supplier statement and the meter reading taken around the transfer date; those two records let the opening balance be checked against the actual supply position.

The key point is that the credit reconciliation is separate from the question of whether the supplier was genuine. Keep both figures until the appointed supplier confirms the transferred balance.

What happens if my energy supplier goes bust?#

Ofgem uses a Supplier of Last Resort process for eligible customers so that supply can continue. The replacement supplier will provide instructions for moving the account and handling balances. Ofgem’s safety net is designed to maintain continuity of supply, protect domestic customer credit balances under the relevant process and move customers to a new supplier without requiring them to arrange an emergency replacement themselves.

What happened to Tomato Energy customers?#

Ofgem says Tomato ceased trading on 5 November 2025 and that British Gas was appointed to take on its electricity customers as Supplier of Last Resort. The transfer was handled through Ofgem’s Supplier of Last Resort process, so customers did not need to arrange a replacement electricity supply themselves.

Should I switch immediately when a supplier fails?#

Usually wait for the appointed supplier's transfer process to be established and for instructions to arrive, because switching too early can complicate account and credit-balance reconciliation. In the meantime, record your meter reading, keep the final bill and account balance, and use only contact details published by Ofgem or the appointed supplier.

Will I lose money already paid to a failed supplier?#

Domestic customer credit balances receive protection under Ofgem’s safety-net arrangements, but keep your old statements and payment records so the new supplier can reconcile the account. The safety-net process is designed to protect domestic customer credit, but records are still important when the balance is rebuilt by the appointed supplier.

Should I keep my old energy bills?#

Yes. Bills show meter readings, rates, account balances and payment history that can be useful when the account is transferred. Photograph or otherwise record the meter reading, keep the final bill and account balance, and save bank statements showing direct debits.

Can I be charged a different tariff after supplier failure?#

The SoLR process can put customers onto a replacement supplier’s tariff. Once the transfer is complete, check the new tariff and shop around under the normal switching rules. Ofgem’s safety net is designed to maintain continuity of supply, protect domestic customer credit balances under the relevant process and move customers to a new supplier without requiring them to arrange an emergency replacement themselves.

How can I avoid scams after a supplier failure?#

Use contact details from Ofgem or the appointed supplier’s official website. Never hand over banking credentials or one-time codes to an unexpected caller or email. If correspondence conflicts, use the appointment information published by Ofgem or the appointed supplier's official customer process rather than links in an unsolicited message.

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Next question →How can you avoid being drawn into a money mule scam?

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.